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Fx-Managers Message to Subscribers

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  • Fx-Managers Message to Subscribers

    Dear all,

    First, we do strongly appreciate all the warm and encouraging words we have received in the last few months from you all. Thank you so much indeed.

    Some of the recurrent questions that we receive privately in our simpletrader message inbox is about drawdown, and we would like to clarify and give a detailed explanation on how it works.

    First, please note that most social trading sites and reporting tools measures drawdown in a different manner. For the sake of simplicity, let us differentiate here between:

    - Floating DD: A loss that is alive in our equity, but with positions not closed yet (i.e. the balance is not reflecting that loss).
    - Consolidated DD: A loss that has already been consolidated and is final, already reflected in our balance since the losing positions have been closed already.

    Secondly, allow us to clarify how and when did we start using our ML-based trading system. Our system is the result of a work that started back in 2007 by myself (, when I got interested in Machine Learning algorithms and wanted to apply it to my own trading experience of 18 years so far in stocks, futures, options and CFDs. In 2015 I met Mr. Hitesh Arora, from India, my current business partner, and we started using the system in April/2016. That account already existed and was managed with another totally different system, with no really good success. We can deliver the real full report from MT4 Terminal also to those who requested it.

    With all this, we have the following:
    - The maximum consolidated DD shown of 37% corresponds to another system, not to this one. Please do check history for a full understanding of this. April/2016 is the baseline for our ML-algo trading solution. Actually, it can be easily noted that there is a gap of ‘no trading’ between Nov/2015 and Apr/2016.
    - The maximum consolidated drawdown since then has been lower than 10%, has shown in the attached snapshot (image) on this post.
    - However all this, during high-volatility moments on big news, such as Brexit and US Elections, we have to admit that we are not trading under normal circumstances. Not acknowledging this is the first source of losses for many traders. During Brexit and US Elections we traded managing DDs of around 30%. We had the trade limited to a 40% DD during this couple of days because that was the only way to yield profit under extremely-high-volatility. These situations rarely happen, but we had 2 this year 2016, and we succeed in both of them.
    Please note also that our system has 2 different modules: The ML-algo trading module and the ML-Risk-Management module. The latter gives us information in real-time about the risk of every single position in a rank between 0 – 10. That’s how we take decisions and perform the trade manually.

    We should have start this trading with a fresh new account, but now it's too late. That was our mistake.

    We certainly hope this sheds some light on what, how and when we deal with DD. We will keep posting with more interesting and big news in the next few days and will update in a more professional manner our signal description, signal news and signal FAQs sections.

    Keep an eye on our posts and thank you again.

    P.S: Please note that in MT4 Client report the peeks from last days are due to some withdrawals in order to arrange our move from MAM to PAMM by end of month.

    Mustafa C. Boullra
    Founder & CTO
    Skype ID: mt4software