A NEW Revolution In Forex Training
Re-Defining Honest Forex Performance Reporting
Learn Exactly How Other Forex Trading Rooms Hyper-Distort Results That Lead To Trading Tragedies …Author: FxST Chief Trader Armando Martinez,
Are you wondering why YOU can never DUPLICATE Most live Forex Trading rooms published RESULTS ?
With the explosive popularity of Live Forex Trading Rooms over the last 2 years there has been a significant increase in consumer demand for more and more trading rooms for currency day traders! In response, the Forex industry has responded with more and more new trading rooms coming online everyday!
The golden number that many consumers seek is “How Much Money Can I Make” or “How many PIPS do you make?” – it is all about results!
But what is a good result for a Live Trade Room?
It may seem to be an odd question to ask, but upon closer inspection it is easy to see just how difficult it is to compare the results from different trading rooms. This is because there is NO single agreed upon standard or method on how Performance Results should be reported!
Furthermore, traders are faced with many marketing gimmicks that artificially inflate the “Posted Results” of these trade rooms. Many traders report disappointing results because they have expectations of achieving 100, 200, or even 500 PIP days – everyday!
After all, that is what most Trade rooms are promoting! Forex is the business of making money – that is big money fast !
Unfortunately many Newbie traders forget they have to walk before they run!
Regardless, there are 4 primary ways Trade Room Results are published to inflate the true results. These results are often reported in a way that an individual retail trader will never be able to duplicate.
It is important to note, that most trade rooms will have more than 1 active MODERATOR calling trades (i.e. 1 – chief-master trader, and Jr. associates) or more than one trading room per trading session. With multiple rooms and multiple traders active in any one trading session it becomes very easy to hyper inflate trading results.
Here is how they do it…
4 Major Ways Trade Room Results Get Artificially HYPER-INFLATED!
- All trade calls are added together – even if it is the same trade (duplicate trade) but made from 2 different moderators
- All trade calls are added together – from all trading sessions! 24 hr Trade rooms add together all trades and assume you will trade 24 hrs a day 6 days a week
- Losing trades are excluded from the results so you never get a real NET result
- “Could have”, ” Should have”, “Would have” trades- hypothetical traders are added in to the results
So many trading rooms use more than one of the above reporting tricks for there promotion and marketing. So it is almost impossible to compare results between trading rooms.
Is Your Forex Trade Room Working Against You?
In some trade rooms things can really get nasty when the trading room acts as an introducing broker. In other words, these other trading rooms tempt you with lucrative offers to open a new Forex trading account and then they (Trade Room) will earn commissions on your future account activity.
Talk about conflict of interest (an understatement!!).
The operators of these trading rooms present a very action packed room – just like Vegas gaming tables! The question here is not if the room is exciting and active … the right question is how much money is being made by members in the room?
Unknowingly, clients in these room have no idea that the moderators making the calls in these rooms are PAID by the number of trade calls made, regardless of win or lose! When members place a trade the room is earning a commission. From here you can see how incredibly easy it is to get fooled by “Hyper-Inflated” results!
So what can the average trader do?
How To Compare Results Between Forex Trading Rooms
Armando Martinez, the Chief-Master Trader at FxST, has been a pioneer of the online Forex Training Room and developed one of the most powerful trading performance metrics call the Trader Efficiency Quotient (T.E.Q) that essentially eliminates the con game played by so many trading rooms.
More importantly it allows the retail trader like you and me to compare apples to apples! The trading results from one trading room to another!
It is a wonderfully simple concept.
The T.E.Q is a simple calculation, dividing time into the total PIPS earned (TOTAL PIPS EARNED /Time). The number is reported as PIPS/HR not unlike an hourly wage!
So what does the value mean?
It is a measure of a traders efficiency for profitable trades. Many people start Forex for lifestyle and financial freedom, but fail to track their progress towards this goal. Just looking a their account balance will not reveal the improvements that are made in your trading style that measure:
At the FxST Forex Training School, we have examined 1000’s of students trading accounts. Through the use of the ProfitProtectionSystem™ (PPS™) we are able to determine what we call the break through number… it is actually quite shocking!
Before I reveal the breakthrough ‘T.E.Q (i.e. the number that indicates a student is ready to go live on the $100 K /year Forex Business Plan) … it is important to remember how we are using this number here – to compare the results from one trading room to another.
8 Critical Factors To Calculate “Comparable Forex Live Trading Room” Results
The key number is “Total PIPS” and here is our recommendation on the “Guidelines” of an Honest and Fair Trading Room Performance Report should follow:
- Report Trades Results From A Live Account Only
- Report Trades Results Only Once
- Scalpers should consider any trade occurring within 10 secs to be the same setup/trade
- Any Trade entry price variance of 5 PIPS to be the same trade
- All Losing Trades are counted against the NET result
- The Trading Session must be clearly defined (i.e. New York Session 7:30am – 11:00am equals 3.5 hrs)
- Trades called must be successfully confirmed by a student – in other words its not what the Leaders of the room are doing, it must achievable by the Live Training Community using a specific trading method that can be taught to others. Believe it or not many Forex gurus have no idea why they succeed and attribute success to a “gut feeling” and some randomly changing explanation!
- Results must be published and available to the Live trading room community
- Use a minimum of 3 month average data to compare. Ideally we recommend you use 1 year results!
When you obtain the above information on the published performance reports you will have the ability to modify/adjust the numbers to represent a realistic score that you can accurately compare between different trading rooms using the Room’s T.E.Q.
More importantly than published results is to have a realistic picture on the TOTAL number of PIPS you can obtain with coaching, training and support! The secret to Forex success is knowing your exact goals and HOW you will achieve them.
In our experience once a student can achieve a T.E.Q in the range of 3-4 PIPS/Hr consistently over a minimum of 1 month trading (assumes 1 daily session of 3-4 hours 4 days a week) They are ready to go to a live trading account.
What Is the Difference Between a LIVE Forex Trading Room vs Training Room?
In short, Trading Rooms are result-based signal rooms focused on the results of the room moderator (Forex “Guru”) verses Training Rooms which are “process-based” focused on the results of the participants NOT the moderator.
A typical Forex Trading Room is a place for retail traders to watch live trade calls by a “guru” often called the trade room “Moderator”. These “Trading Rooms” are designed to provide signals to the room attendees/viewers with the idea that you can follow the success of the room moderator by placing their own personal trades as they are called. The focus of these rooms are ‘performance-based” (i.e. outcome goals) and to achieve the “appearance” of success the trading room will have 3 or more moderators covering different trading sessions or even overlapping sessions. As discussed above, results are easily distorted or exaggerated, since the trading room will report results on the best trades taken from all the traders. In other words, the performance metrics are based on selective short-term success, and not on long term performance.
Moderators will have independent trading styles based on instinct and experience. Often hindsight explanations are given to why trades work without any clear, coherent trading strategy. The typical outcome will result on a “teacher dependency” where the participant will only learn to follow, listen with limited 2-way discussions. In these rooms, participants are encouraged to ask each other for mutual support and often memberships can exceed 100 persons.
In contrast, a Forex Training Room focuses on the participants begin able to acquire and develop the skills and knowledge to be able to trade independently. A well defined trading plan and trading method are part of the training material. Participants are asked to focus on achievement on the long term goals defined in a business plan (i.e 52 week plan). In a training room participants not only have an outcome goal, but also very specific ways on HOW to achieve those goals.
Furthermore, 2-way discussions are encouraged and small-group dialogue is not shaped by debate, but rather a collaborative and supportive nature. For example, in the FxST Training Room you will often hear participants sharing failures and hard lessons learned, in addition to success. This never happens in a trading room – where egos reign. In the Trading Room its all about who the hotshot trader is in the moment.
We invite you to experience the difference and the revolutionary new way that FxST uses a Training Room learning environment online to enhance the opportunities for Forex trading success. We challenge you to look under the hood of how professional traders achieve success day in and day out, month after month with Consistent Profits and Emotion Free Trading.
Below you can see the past performance of the FxST Trading Strategy results in the FxST Scoreboard. These results are based on trades taken by participants just like you, using the 5 specific Trademarked Trading Strategies and using the Forex Business Plan.
94.2 % Winning Trades
95.7 % Winning Trades
96.8 % Winning Trades
97.1 % Winning Trades
88.2 % Winning Trades
81 % Winning Trades
89.7 % Winning Trades
84.2 % Winning Trades
82.9% Winning Trades
|October 2012||November 2012||December 2012|
The FxST community is a small group of dedicated traders that trade a style of Forex Scalping that favors small high probability trades over high risk high return trades (low probability). However do not let the FxMicroProfit Strategy fool you – when you unleash the most powerful force in the universe – Micro-Profits Explode !
p.s. If you seek Consistent Profits and Emotion-Free Trading then I would like to urge you to take advantage of this limited time opportunity to experience the FxST Live Forex Training Room – Request Free Preview Now