Forex-Goldmine Update Nov. 25, 2009

[Forex-Goldmine]

As you may know FXDD has announced that they will going under the NFA, starting this Sunday November 29th FXDD will ban hedging, initiate the FIFO back office solution and will reduce the leverage on the AUDNZD and EURCHF to 100:1

We have been getting many questions from members that are with FXDD, who are very worried, not knowing what do to with their live accounts, many of which are in high drawdown from the AUDNZD which is in the high ranges, fortunately the situation is not as bad as people think.

Hedging:

Since the RoboMiner trading system does not hedge, the NFA's ban of hedge trading, does not affect the RoboMiner trading system in any way.

FIFO:

FXDD will be using a back office accounting solution similar to what IBFX has been using, which can work with the regular RoboMiner trading strategy, (FIFO = False) so we are not worried about this, however using the regular RoboMiner strategy, will require a understanding of how exactly the Back office solution works. From what we understand, say you have 15 open sell trades on the AUDNZD, FXDD's back office accounting, will see all those trades as one big bulk trade and as each one of those 15 sell trades close (with a 40 pip profit) it is taken off that big bulk trade, and when a new trade is opened, it will be added to that big bulk trade, (we have users who are trading the regular strategy with IBFX and everything seems to be fine)


Leverage:
100:1 leverage will also work with the RoboMiner trading system, we have many users trading with ECN and STP brokers, many of which offer only 100:1 and the RoboMiner is working fine with them. With a lower leverage of 100:1 a 0.01 micro lot, will cost you $10.00 instead of $5.00

FXDD, has assured us that will still be able to use the regular RoboMiner EA, without any changes (besides a lower leverage of 100:1).




Drawdown

For members that currently have a large drawdown who are trading with FXDD, IBFX or any other NFA regulated broker, this Sunday your leverage will be set to 100:1, if you have been trading with 200:1 your account margin will double and your free margin will decrease from whatever amount, that was added onto your margin, so adding some capital to your account, is a good idea, because if your account margin ever equals out to your account equity, your broker will automatically close out all your open positions. Please note, that the lower leverage will not increase the drawdown, as the drawdown is measured in pips and does not have any affect on how much you paid to open your trades.

As the AUDNZD has gone to extreme ranges, at this moment you might have a large temporary drawdown (floating loss) and that is why it is very important to trade with our recommended money management settings, (minimum 2300 Balance factor for trading the AUDNZD on a USD account, 2800 for trading the EURCHF and 4000 for trading both currencies) if you have the Balance factor set at 0.0 then the RoboMiner's Auto calculation feature will take care of this, just be sure that you have the proper minimum account balance, to trade with micro lots, ($2,300 USD for trading just the AUDNZD and $4,000 USD for trading both currencies, with 0.01 micro lots)

With the RoboMiner trading system their will always be a temporary drawdown, as it is a natural part of using a system, that trades without a S/L. We are attaching here a special report which will explain more in depth how to handle large drawdown, you can as well download this report by clicking on the "Free Products" page, in our Members Area: http://www.forex-goldmine.net/members/login

For a final note about the current drawdown we are experiencing:

We have been here many times before, however because we are conservative and follow the rules, we are not worried. We do realize that some users have not followed the rules, by trading more aggressively and are likely sweating right now, and maybe have started getting close to receiving margin calls. We hate to see that happen to anyone. But all we can do is say over and over again to be conservative with your BalanceFactor. There are no guarantees in the forex market, and we cannot guarantee that the prices will never go above 1.30 for the AUDNZD. But we can say that the RoboMiner system has personally worked for us in the past, and we believe that it will continue to work for those who understand the philosophy behind the system and who are willing to follow the rules and be conservative.


Change your magic numbers:
Now would actually be a great time to change your magic numbers, so when the market does eventually move back to the midpoint area,you will have two trades closing, thus doubling your profits. You can read more about this, by downloading the Change Profits EA, which can be found in the "Free Products" page.




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If you ever have any questions, please do not hesitate to contact us anytime.


To all our USA members, we wish you a Happy Thanksgiving.


Wishing you all lots of pips and much success.


The Forex-Goldmine Team

[nkg0319]

Just joined the group over the Thanksgiving here in the States. And I'm trying to activate a demo account with FXDD, and discovered that their leverage is 100:1 rather than your recommended 200:1, and also no micro account possible. So, I now am trying to look into Forex.com which was recommended by your forum. I am choosing UK based and perhaps using Euro instead of $? But it appears they do offer 200:1 but do not offer micro account? I'm planning to use the default setting on the RM Pro. Please advice me so that I can start. Thank you.
Toshi

[forexpro12]

FXDD and Forex.com both offer micro lots, if you contact support, they should be able to help you get started.

[phils]

I am still concerned about the back office FIFO solution at FXDD. Can anyone add more to the discussion to ease my concerns that it works with RMII FIFO (off)?

Regards,

[startingforex]

On the daily chart of the AUD/NZD pair, we are meeting resistance at around 1.2804.

MACD is showing divergence and histogram divergence at the same time, not to worry. This dog is going down soon.

[dennerle]

On the daily chart of the AUD/NZD pair, we are meeting resistance at around 1.2804.

MACD is showing divergence and histogram divergence at the same time, not to worry. This dog is going down soon.

hmmm but aussie's interest rate increased from 3.5% to 3.75%

usually interest rate is a big price movers

will it still come down to the mid points?

[mblake]

In Fx always expect the market (brokers) to move the pair in the opposite direction to that expected before it returns to a more logical path based on fundamentals.

That said (i'm only giving an over simplified response here) it didn't move upwards as the rise in interest rates had been widely leaked before the official anouncement which is why the pair had moved higher in the days before the anouncement, fully discounting its effect on the day. In fact due to the 'new' news about Dubai and commodity impact on Australian exports the net result was a fall in this pair. Michael