MA is used to determine market conditions and bracket the current price with a STOP and LIMIT order to profit in that direction. We decide daily whether to place just a BUY trade or a SELL trade instead of STOP and LIMIT trades to start our trading routine.
If the direction is long, BUYS are used to take profits. If the trend reverses, BUY LIMITS are hit and profits taken on the reversal. If the direction is short, SELLS are used to take profits. If the trend reverses, SELL LIMITS are hit and profits taken on the reversal.
Depending on market conditions instead of placing a BUY STOP/LIMIT if the market is long our traders sometimes place a SELL STOP/LIMIT.
Once the direction is determined and trading is started we may use LIMIT trading to add to our positions.
The Trading Manager usually starts placing trades by bracketing the current price with STOP/LIMIT trades in a proprietary fashion. This proprietary fashion sets the STOP/LIMIT trades around the current price at distance of approximately ½ the pips defined by the first value, 25 in this case as an example.
The Trading Manager has the ability to adjust these parameters based on market conditions. Once either the STOP or LIMIT is hit creating the first trade, subsequent trades are placed a fixed distance of 25 pips either side of the current price. Each LIMIT trade added is placed 25 pips above/below the last trade.
The Take Profit values are decided on a daily basis and then traded automatically over each 24 hour period with fundamental and technical analysis taken in to account throughout all trading hours.
Our powerful proprietary trading strategies allow us to explore different ways to trade every day.
Auto Calculation for Take Profit is based on the Average True Range (ATR) indicator. The ATR indicator is based on a 21 period cycle of each pair and cannot be changed. This allows the Trade Manager to create a “breathing space” based on that pair’s volatility.
Integral to laying out additional trades our trading platform automatically adjusts the lot size for each trade based on the Trading Manager’s Multiplier daily. Every trade added as a LIMIT has a lot size incrementally larger than the previous based on the user selectable Multiplier. This Multiplier is directly tied to the Money Management routine and is proprietary.
The number of trades placed is decided by The Trading Manager on three separate occasions over the course of 24 hours.
WhyLose.com uses a proprietary method to calculate the profit potential of trades that are currently open. The method takes the total number of trades out, uses the value of pip movement for the lot size of each trade then calculates a “Potential Profit”. This Potential Profit is converted to a Take Profit value for all trades then each trade is modified with the new Take Profit value.
Instead of using the standard take profit values as detailed above the Trading Manager has the discretion to force the take profit to a user defined set number of pips from the break even point.
A wise man once sad, “The safest way to trade is to not trade at all”. That being said, trading in any market, especially FOREX is very risky. One way or another, whether or not we are new, you are reading this because you want to make money. WhyLose.com helps you automate your trading but trading still involves risk.
How much does someone risk to trade? That’s a great question and we’re still searching for the perfect amount of money to trade. Whether we trade a lot or a little, if we trade FOREX, dangerous waters are right around the corner if we risk more than we should.
Money Management helps us determine how many lots we should be trading. We use an automated Equity Protection routine to minimise loss and avoids the need to send SL and TP to your broker.
First and foremost, how much should we trade? Should we trade 1% or 10%? How about 2% to 3% of our account balance or available equity? Everyone seems to have the right answer. Here’s a simple and safe philosophy to use: Simply move the decimal place to the left four times for a standard account and three times for a nano account. This gives us the total “contract” we should have in open trades on our account. That amount is the highest we should be trading. If we traded manually, one trade for this amount is it. If we wanted to trade two manual trades we take that figure, divide by 2 and trade those two trades at that new amount. Our contract with our broker is the total of those two trades.
We use many levels and total profit calculation to make us money.
The Trading Managers do risk assessments and set our controls based on our assessment of the volatility of each pair.
We only trade on 3 pairs – EURCHF, GBPJPY and AUDNZD.
One pair may be volatile so we will give it a portion of 10% of all aggregated account balances. Another pair is wonderful and we think it will perform well with our proprietary strategies. So we give it a portion of 50% of all aggregated account balances. The third pair has uncertain market conditions so we give it a 20% of all aggregated account balances. These choices are made by our Trading Managers three times each day.
The first pair trades OK. We can control its portion, we set its risk with manual lots or money management and use stop losses or equity protection to protect your account.
The second pair’s principles are the same as the first.
The third pair may have different settings.
Portion control gives us wonderful opportunities and protects our Trading Managers and your hard earned money. This feature gives us the control we need to successfully employ complete money management and equity control.
Could we we trade on multiple pairs? More than three? Sure, if our portion balance is multiplied by the number of pairs we trade. This is the safest way to trade! Over the last 20 years the total number of trades out at any one time has not used a significant portion of our margin nor has the P/L been significantly negative.
Equity Protection is our way of protecting your account.
We do NOT send Take Profits or Stop Losses. What happens if we lose our internet connection?
We can not monitor our trades for profit but worse, we may have several trades open at your broker without a stop loss. That’s where the power out stop loss protection feature comes in. We don’t want POSL to interfere with the logic of our trading while, at the same time protecting our trades and your hard earned money should our internet connection fail. So how is this done?
POSL is calculated based on our EP value to not interfere with our profit taking logic. It is based on the formula:
POSL = PortionBalance X (MaxDDPercent + 1)/100)/(pipvalue X Total Lots)
Initially, when our trading software starts, it places a BUY or SELL trade at small lots dependent on your account balance. If you do the math, you can see a rather large POSL is calculated. So, while small lots are open, the POSL sent is no larger than 600 pips, or whatever value we set in POSLPips.
As more trades are added, each trade is modified with the newly calculated POSL thus synchronising all open trades with a common stop loss. This POSL gets tighter and tighter as more trades are placed which keeps all open trades in line with our Equity Stop Loss Protection plus 1%. An additional 1% is added to the MaxDDPercent to avoid interfering with software profit taking logic yet protect your open trades with a stop loss should our internet connection fail. This is a very powerful feature for protecting your hard earned cash.
Our software monitors the total number of open trades and calculates a potential profit and keeps an internal modification of all orders to the trades that are out and “synchronises” all of the “Take Profits” (TP) to the same value. If more trades are out, the TPs are sync’d closer and closer to the actual price making the reverse required for a profit less of a movement.
Additionally, we can now turn on a Profit Trailing Stop (TS) feature. This Maximise Profit feature has several advantages. Our trading platform calculates a potential profit in its routine and it’s through this calculation our Trading Managers set a percentage of profit we are willing to live with. If the trend starts to reverse, our basket of trades becomes a positive value. We already know its profit potential but Trading Managers tell our software we want to set a profit trailing stop at a set percentage of that profit potential.
Additional to this profit trailing stop feature, the trading platform has a way of moving the TP once profit trailing stop is set. In other words, once trades become positive and profit trailing stop is set, Trading Managers can now tell the trading platform to move the TP by a set number of pips.
This gives our trading a new profit potential and will move the profit trailing should the profit trend continue. This gives us the potential of moving the profit trailing stop taking advantage of any run that may occur. Our trading strategy allows take profits in two more ways, the traditional take profit way with moves or a profit trailing stop way.
Some features of our trading software might compete against others to yield what might be called a “negative profit potential”. This can occur in many different ways. Profits or the potential for a profit is easy to calculate based on the value of a pip, the number of lots out and how far a trade needs to run to garner a profit. The previous section talked about a way to manage positive profit potentials and even set profit trailing stops but what do we do about negative profit potentials?
Once our trading software has started opening trades, it is at the mercy of the price. If the price moves too far in the wrong direction, it will cause a drawdown on your account. One way of avoiding a high drawdown is by hedging the open trades.
Hedging is simply the opening of a trade in the opposite direction of the already open trades. For brokers outside of the US, this hedge trade can be made on the same pair, meaning that for every movement in the price, the gains/losses on the basket trades are directly offset by losses/gains on the hedge trades.
Unfortunately, the NFA have banned hedging for brokers in the US, so any hedge trades need to be opened on a correlated pair. A correlated pair is one in which any movement in the price of one pair, is closely matched by the movement of the other pair, whether in the same direction (Positive Correlation) or in the opposite direction (Negative Correlation).
Our trading software will automatically decide whether pairs are positively or negatively correlated by calculating the correlation coefficient using the daily historical data over a set number of days.
You will not see hedge trading by our Trading Managers often but it can be useful on occasions and it is at their discretion.
The number of hedge lots opened is based on the total open lots adjusted by a hedge lot Multiplier. If the trading platform opens a new trade, then another trade will be opened in the hedge, using the same lot Multiplier. The hedge trades will be closed in one of two ways. If the net profit from the initial trades and added hedge trades reaches the profit target set by the Trading Managers, then all trades will be closed.
The other method is by way of a trailing stop. This will trail the price until it reaches break even, or the hedge trades are stopped out for a loss. At break even Trading Managers have the choice of halting the trailing stop, or letting it carry on, so the hedge will stop out at a profit. If the trailing stop is allowed to carry on, Trading Managers can choose to have the stop reduce as the price moves, which will lock even more profit in the hedge trades.
Our Early Exit Feature may reduce the profit potential if the trades have been open for some time, or if there are many trades open. There are actually two strategies involved, and Trading Managers choose to use either of them individually, or both together. The first strategy is a reduction in profit over time. Trading Managers specify how long to wait before this strategy starts and what percentage of the profit they are willing to sacrifice for each hour the trade is open. Trading Managers also have an option to reset the start time and reduction percent when a new trade is opened.
The second strategy is a reduction in profit by the number of open trades. The software allows Trading Managers to set the level at which this reduction starts and the percentage reduction per level.
If both strategies are used together, there is a possibility that the total reduction percent could go over 100% and the trades could close at a loss. Trading Managers have an option to prevent this from happening.
A security feature on our trading platform is added for your convenience. The software sends a trade comment with each trade to your broker. This feature helps you track our trade in your MT4 platform by showing which rule took out which trade in the comments section of our terminal section. If you don’t see the comments section in the terminal area of your MT4 platform, right click anywhere in the terminal window and select “Comment”. It will show the comment of each trade.
The worst thing that happens to all of us is having a trade placed incorrectly or inappropriately. Our software incorporates many features to prevent missed or poor trades from happening. The trading platform has trade management functions to help prevent or eliminate those problems. They are not able to be changed by Trading Managers. Every time an order is placed, modified or closed, our trading software checks that request for viability and continues to attempt to do the request until all else fails.
One control a Trading Manager has is to adjust the Slip variable for BUY/SELL orders or orders that the trading platform closes, which will prevent the trade from being executed if the Broker’s price changes. The software will also prevent a trade being opened if the spread is higher than Trading Managers deem acceptable.
Our trading platform provides Trading Managers with a visual overlay of the “action” that is occurring. A Trading Manager can quickly identify how their trading is going simply by looking at the chart overlay.
The chart overlay quickly gives Trading Managers information about how the software is trading on that pair.
The WhyLose.com Trading Platform is a very unique and powerful 24/5 trader supported by Trading Managers. Several features make this safe and profit taking is very powerful. The math is simple and money management will increase the base lot size as you get a higher balance.
We believe our system has great potential in this fast moving market of FOREX. Most of all have fun in trading. Low draw-downs and reasonable margin usage make our software an established weapon in the FOREX trading market.
Clients come to Lion Asset Management or Carlyle and Day for one thing; to make money. Our managed forex trading strategies are backed up by extensive research and analysis. We have a highly disciplined approach to deploying these strategies.
Our compliance procedure means we can only accept direct investment from HNW individuals and investment professionals who are exempt as set out in Article 14 of the UK Financial Services and Markets Act 2001 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001.
The forex alert programme described above which does NOT fall under Article 14 of the UK Financial Services and Markets Act 2001 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 because we do not handle client funds was introduced after many years of hesitation by our founder.
We simply, in the first instance, provide alerts which you will see are profitable overall and then, if you wish to, you can set those alerts to be traded on your own forex brokerage account which we have no control over. This allows readers who have their own forex trading account but do not qualify as HNW or sophisticated investors to participate and use our forex signals at a broker of their choice.
We have regular forex seminars in Malta and UK for educational purposes to assist you with the setup and forex trading in general or sessions can be booked via Skype or Facetime. You can subscribe for a free trial by clicking the button below or for further information please use the form beneath.
Many clients set their systems to automatically trade all our FX Alerts. We can provide assistance to do this if you’re unsure.
You don’t need to spend the time building your own strategy. Developing your own trading strategy can be a time consuming process. It has taken us over 10 years to get to where we are today.
You save time placing trades and monitoring the markets. In addition to not having to take the time to develop a trading strategy, you can save time by not having to follow and execute trades.
Once set up – and we can help – trading is set and forget.
All our trades are automatically copied into your account.
You diversify your risk.
This method of trading is a low-cost alternative to traditional money management. In the past, if you wanted an experienced trader to trade on your behalf, you would need to go through a hedge fund or managed account structure – with significantly higher fees.
No paperwork required. There is no messy or difficult paperwork to go through to get started on copying signals.
You maintain complete control of your account. The account you use is in your name, so you do not need to give a power of attorney to anyone.
Did I mention we can help? We can set you up in 30 minutes to trade our signals for a one off fee of £99. It will probably save you a lot of time and heartache. Please click the button below to get started today.