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  • What's your investor "mix"

    Hi guys,

    I thought it'd be a good idea to see how everyone's managing the signals on LFT on their account. Do you have one account with several signals? Do you have a different account for each signal? Hopefully this will help new LFT members see what has been tried and might avoid the same mistakes!

    I'm running 1 account at IC Markets with the following signals currently:
    - FX Viper: 3x risk
    - Kharveld FX ACE: 2x risk
    - Trusted FX: 5x risk
    - Will run Simple Scalper starting on Monday at 0.1-0.2x risk
    - Also running 2 other EA's outside LFT (but not here to promote other providers!)

    Have tried and abandoned:
    - FX Junkie
    - Silent Specialist
    - GCMB FX (avoid signals with short histories!)
    - Abgar FX

    Hope others chime in with their experiences

    Michael

  • #2
    Hi Pearcey2,

    Very good idea of yours having started this useful thread

    Aside from the main account that I use for my personal manual trading, combining a technical approach for short term scalping + a fundamental one for news trading, I’m also currently running 1 account with Global Prime and ST VPS.

    It started at October’s end with:
    - FX Viper @ 1x risk
    - Trade Alterter @ 1x risk
    - FxPriceActionSignals @ 1x risk

    Today I have increased the Risk Multiplier from Viper to 4x and from TA to 2x, with FxPA remaining the same (hope I’m not doing something stupid here).

    Also tried Silent Specialist with another small account, with a remaining of $400 USD that I’ll be using for testing the Vijay’s Smart Scalper that it’s about to start on Monday 10/18.

    And I’m looking forward to FX Money Machine (currently running), Smart Trader, and the upcoming BKK (aggressive short term scalping) that will supposedly start next January.

    God... I’m still thinking on the best possible way to combine all this signals across 2 or 3 accounts... The potential DD’s of the different providers hopefully aren’t normally correlated, because of their different trading styles/strategies... But anything can happen; there always will be a possibility of 2 or more DD’s starting at the same time along/during the same period; so regarding risk managing, the best logical way obviously would be to divide all your capital into 1 separate account for each signal, thereby obtaining the same level of returns as if they were all running into the same account with bigger capital, but with much lesser risk because of diversification, avoiding any possible DD correlation.

    What do you think?

    Regards!
    Victor

    Comment


    • #3
      Originally posted by pearcey2 View Post
      Hi guys,

      I thought it'd be a good idea to see how everyone's managing the signals on LFT on their account. Do you have one account with several signals? Do you have a different account for each signal? Hopefully this will help new LFT members see what has been tried and might avoid the same mistakes!

      I'm running 1 account at IC Markets with the following signals currently:
      - FX Viper: 3x risk
      - Kharveld FX ACE: 2x risk
      - Trusted FX: 5x risk
      - Will run Simple Scalper starting on Monday at 0.1-0.2x risk
      - Also running 2 other EA's outside LFT (but not here to promote other providers!)

      Have tried and abandoned:
      - FX Junkie
      - Silent Specialist
      - GCMB FX (avoid signals with short histories!)
      - Abgar FX

      Hope others chime in with their experiences

      Michael

      Pearcy, what a great thread,

      For some reason today i was thinking about the same thing. But in a different perspective. This is really great man. it helps other traders.
      Trade the market, not the trader

      Comment


      • #4
        Originally posted by VictorTous View Post

        God... Iím still thinking on the best possible way to combine all this signals across 2 or 3 accounts... The potential DDís of the different providers hopefully arenít normally correlated, because of their different trading styles/strategies... But anything can happen; there always will be a possibility of 2 or more DDís starting at the same time along/during the same period; so regarding risk managing, the best logical way obviously would be to divide all your capital into 1 separate account for each signal, thereby obtaining the same level of returns as if they were all running into the same account with bigger capital, but with much lesser risk because of diversification, avoiding any possible DD correlation.

        What do you think?

        Regards!
        Victor
        From my experience combining several signals in one account isn't a great idea. The risk multiplier will calculate lots based on account equity not account balance, so if you have floating positive or negative gains it can lead to inflation/deflation of lot-size from your other signals. If it happens once or twice, no biggie, but from my experience if you have fairly active signals it will happen often and it will skew the results of your signals.

        Comment


        • #5
          Originally posted by Spacey View Post
          From my experience combining several signals in one account isn't a great idea. The risk multiplier will calculate lots based on account equity not account balance, so if you have floating positive or negative gains it can lead to inflation/deflation of lot-size from your other signals. If it happens once or twice, no biggie, but from my experience if you have fairly active signals it will happen often and it will skew the results of your signals.
          Yes that's true but having them on the same account means you can use the same funds for all your signals. I try to make sure I choose signals that don't have long floating drawdown minimising the possibility of getting a margin call due to several signals being open together.

          Fx Viper, trusted fx, kharveld fx... All quick in and out scalpers

          Although it's more risk having them on one account, it seems a bit of a waste having 4 accounts sitting there doing nothing while one account has an open trade

          Comment


          • #6
            Great thread Pearcey.

            Most of the signals will work well in conjunction with each other.

            The signals to keep on an individual account are Smart Trader, Ping's EA and Pendulum. Everyone else works well together.

            Every trader on the site trades a fairly different strategy, so the chance of correlated drawdown from having 2 signals on one account is pretty slim.

            My preference for is to always to run a separate account for each signal, it's the safest way to do it and makes it easier to track performance.
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            Comment


            • #7
              Originally posted by VictorTous View Post

              God... I’m still thinking on the best possible way to combine all this signals across 2 or 3 accounts... The potential DD’s of the different providers hopefully aren’t normally correlated, because of their different trading styles/strategies... But anything can happen; there always will be a possibility of 2 or more DD’s starting at the same time along/during the same period; so regarding risk managing, the best logical way obviously would be to divide all your capital into 1 separate account for each signal, thereby obtaining the same level of returns as if they were all running into the same account with bigger capital, but with much lesser risk because of diversification, avoiding any possible DD correlation.

              What do you think?

              Regards!
              Victor
              I would say you need to be careful and aware that running anything above risk 1 combined *could* lead to a total loss.

              That said, I personally run Viper at 4x Risk (though on GBP acc) with FX Amp alongside at 1.5 risk (at present). I think you have to adapt risk to suite your accounts and not just set and forget.

              Comment


              • #8
                I would suggest this

                Say you have a 10k account and you want to follow 4 signal providers here at 1x,2x,3x and 4x respectively

                and you want to allocate the same amount for each of the signals, instead of creating 4 different accounts with 2500 in each of the accounts, i suggest the following


                Change only the risk settings in the same 10k account, as in

                say for signal1, you are allocating 2500, i.e 25% of your capital, and for signal1 you want to take 1x risk, so set your risk as 0.25x

                for signal 2, you are allocating 2500, i.e 25% of your capital, and the risk you want to take is 2x, so set the risk as 0.5x

                signal3, your capital is 2500 and the risk is 3x so set your risk as 0.75
                signal 4, risk as 1x..


                This is the same as opening the 4 different accounts but with an exception

                for any signal if you are taking more than 1x risk, you will have more DD than the master account so, you must need to set the max allowable DD for that particular signal as 25%. So when that particular signal gives the 25% DD, if you had created a new account, it would have blown, right? so here you will be exiting all the trades at 25% as you are allocating only 25% for the signal provider.

                Hope it did not confuse many. Good luck
                Trade the market, not the trader

                Comment


                • #9
                  Super mix!

                  Hello members,

                  What do you think of this hypothetical combination of signals trading inside the same account?
                  Both in terms of risk/”safety” and in potential monthly ROI; also supposing that their Drawdowns do not correlate/coincide.


                  - FX Viper with 1.6X risk (between 3% and 6% possible average monthly return for the long run, with a feasible DD of 24% at that risk).
                  http://www.myfxbook.com/members/FXVi...account/616112
                  http://www.connectforex.com/signal/633/FX-Viper.html

                  - Trusted FX with 1.6X risk (between 3% and 6% possible average monthly return for the long run, with a feasible DD of 24% at that risk).
                  http://www.myfxbook.com/members/Trus...agement/745669
                  http://www.connectforex.com/signal/1297/Trusted-FX.html

                  - Trader Alerter with 1.6X risk (between 2% and 9% possible average monthly return for the long run, with a feasible DD of 20% at that risk).
                  http://www.myfxbook.com/members/auto...alerter/544436
                  http://www.connectforex.com/signal/2...deAlerter.html
                  Has a consistent trade-history (the big DD at the beginning was because of some initial very aggressive trading; something that he doesn’t do anymore, at least not with this specific signal).

                  - KharveledFX_ACE with 1X risk (between 6% and 11% possible average monthly return for the long run, with a feasible DD of 14% at that risk).
                  http://www.myfxbook.com/members/khar...b73WgC3BZJcfkY
                  http://www.connectforex.com/signal/1...eldFX_ACE.html

                  - FxPriceActionSignals with 0.6X risk (between 5% and 12% possible average monthly return for the long run, with a feasible DD of 17% at that risk).
                  http://www.myfxbook.com/members/FxPA...nalscom/721405
                  http://www.connectforex.com/signal/1...onSignals.html


                  * Theoric potencial monthly ROI = between 19% and 44%.
                  ** Relatively safe assuming Drawdowns of more than 2 signals don’t coincide.
                  *** The calculations of possible returns and DD are plain rounded numbers, simply based on their stats, what I’ve seen and read.




                  And the last very interesting signals that I think I’ve found, are the following:

                  http://www.littlefishfx.com/
                  http://www.connectforex.com/signal/1...ok-System.html
                  http://www.myfxbook.com/members/Littlefishfx (Littlefish-RTAS is the one).
                  Please check its trading, read its explanation and more importantly, the answers to the only 3 questions posted in ConnectForex’s link (there’s also a supposedly a valid reason for the custom start date of the myfxbook track-record – is an account that was first used for testing, hence the big DD showed in their stats). It’s the very first signal/service that I found, that bases its trading methodology solely based in the concept order flow; impressive so far.

                  http://ambushtrader.com/
                  http://www.myfxbook.com/members/Ambu...-trader/731135

                  * These two are the very first accounts that I see with a constant positive floating Equity. Never saw that before and seems wonderful to me (is a super rare thing).



                  Well guys, I would like to know your view and opinion
                  Thank you very much for reading!

                  Best regards,
                  Vic
                  Last edited by VictorTous; 12-05-2013, 11:27 AM. Reason: Details...

                  Comment


                  • #10
                    Victor,

                    I feel like you've been looking over my shoulder! I have a very similar setup to you but the risks turned up slightly although once trusted and Viper close their current positions I'll be looking at reducing my risk on those two.
                    Personally TA and priceaction don't do it for me so they're not in my account

                    RTFS does look interesting and just yesterday I started a trial. Here's hoping they deliver!

                    Comment


                    • #11
                      Great thread!

                      Guys... Just my two cents: Remember ALWAYS to calculate your risk settings with the worst case scenario. Joe's post is very helpful: http://www.liveforextrading.org/foru...isk-Multiplier

                      Comment


                      • #12
                        Just had a look at Ambush trader's website:
                        Our traders implement a century old strategy of price measurement to determine logical and high probability trade setups. The use of fundamental analysis is strictly prohibited, as it is merely a justification of price and not the reason markets move the way they do. Other forms of technical analysis are implemented to improve the statistical probability of trades; however, the only true means of defining a trade is through price measurement.
                        Those two sentences in bold are the reason I will never attach them to my account!

                        Comment


                        • #13
                          Originally posted by pearcey2 View Post
                          Victor,

                          I feel like you've been looking over my shoulder! I have a very similar setup to you but the risks turned up slightly although once trusted and Viper close their current positions I'll be looking at reducing my risk on those two.
                          Personally TA and priceaction don't do it for me so they're not in my account

                          RTFS does look interesting and just yesterday I started a trial. Here's hoping they deliver!
                          Hehehe, glad to know weíre in the same boat, Pearcy
                          We appear to have similar taste and criterion about signals and trading in general

                          Why donít you like TA? Because of his small returns during the last months?

                          And yes, FxPAs is in fact risky and has big DD. Half the risk/profits seem to be fine (or it could be 1/3 in your case)... He has screwed a lot the very first week of December. Letís see if he can recover and end the month with nice profits. If can do it, ďI will take my hat to himĒ.

                          Originally posted by pearcey2 View Post
                          Just had a look at Ambush trader's website:


                          Those two sentences in bold are the reason I will never attach them to my account!
                          Youíre right about that I either didnít like it. As we know, market is driven by news and fundamentals, order flow, etc... But nevertheless, I like its performance so far, so I will be watching it during a few months more, and if it continues the same way, I will definitely think in also joining them

                          Comment


                          • #14
                            Yeh looking at TA's account for the last 3 months, monthly return is around 1% while max DD is above 5%.
                            Most of the signals I'm following have these two nearly on par or sometimes monthly return is greater than max DD

                            As for FxPA his account looked a bit like a rollercoaster. He was in drawdown from March through August which turned me away most of all

                            Comment


                            • #15
                              I'm hoping TA gets beter in little time. I consider him a very wise trader, but yes, I don't understand why he's struggling so much.

                              Are you running any other signal that I didn’t listed?

                              And aren’t you concerned running Kharveld at 2X risk, after reading his answers regarding max possible DD in ConnectForex?
                              Take into account that we are talking about an automated strategy/EA that uses increasing BIG lot sizes; yes with manual intervention, but with those things anything can happen in the long run.

                              Comment

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