Precision FX

TRADE STRATEGY AND METHODOLOGY

The trade strategies employed by the PFX system have been completely tweaked and overhauled over the past 2 years. The system has evolved into a fully diversified, multi-strategy system which now simultaneously trades a combination of 3 moderate scalping strategies, a retracement strategy, a high probability trending strategy, and a volumetric channel strategy. The scalping component (which accounts for about 60% of the system) is rather unique when compared to other common scalping strategies. The scalping side of the system typically places on average anywhere from 1-15 trades per day (3-4 days per week) seeking to capture small profits in price movement in relatively non-volatile environments. The system operates on the basis of finding the optimal channel on the M5 or the M30 time frame and the definition of orders from the channel’s confidence intervals. Unlike other scalpers on the market, once the optimum channels are found, it defines the most probable corridor for price movement, and bases it's trades solely on this.

Through extensive research and testing, we have discovered the most suitable trade hours for each currency pair. Although the system can work effectively on any currency pair, several closely correlated currency pairs were found to be much more profitable than others, and the system has been tailored to specifically work with these few pairs. The primary pairs traded include GBPUSD, EURGBP, EURUSD, USDCHF, AUDUSD, AUDNZD, EURCAD, USDJPY, USDCAD, EURCHF, GBPCHF, and from time to time NZDUSD. The core developers of the system frequently update the system and use manual discretion over it when warranted. From time to time other sub-strategies are mixed in with the primary system when the appropriate opportunities present themselves to capture profit. To learn more about scalping strategies, please visit this link.

Nearly all trades are closed within the corresponding trading session of the particular pair being traded, so it is rare that scalping trades are held over sessions and trades are not usually held over the weekend as most of the strategies in the EA are hard-coded not to trade on Fridays. However it is possible to sometimes see lingering trades from Thursday carried over until Friday or across the weekend. Hard stop losses are used on open trades at all times based on an advanced internal algorithm, and the EA does an excellent job at filtering out unfavorable trading conditions. Because of this, it simply "sits out" on the side lines until the ideal trading conditions are met. In our view this trading system provides a very attractive risk:reward ratio. Our team is currently running the expert with moderate-aggressive trade settings (based on leverage and lot sizing). Our personal profit targets with these settings are 5-10% per month while trying to keep intra-month draw downs manageable.

PERFORMANCE

We have worked with the core developers of this system for over 5 years and have been invested with our own funds in the Precision FX system since December 2008. Since this time our team has become partial stakeholders in the system. Hypothetical, back-tested, or returns calculated based on a different system can be very misleading at times, and we believe that the best track record is a live one. Because of the constant testing and adjustments being made to this EA, we did not start trading with a final build of the PFX system until May 1st, 2009. However we did include our full live money performance dating back to December 2008.

NOTE: Performance in the table below is represented in percent (%) and displays the gross monthly return. All months depicted below were traded with live money (not demo, or hypothetical or back test or forward test). The various other colours and breaks represent changes in brokerages being used.

Pink cells = Beta Development Stage
Yellow cells = SPFX Brokerage
Orange cells = Inv Brokerage
Green cells = OFM Brokerage (our current brokerage)

2008 2009 2010 2011 2012

Month Return Month Return Month Return Month Return Month Return

Jan-08 n/a Jan-09 18.70% Jan-10 33.63% Jan-11 -3.16% Jan-12 -12.05%

Feb-08 n/a Feb-09 27.50% Feb-10 15.31% Feb-11 13.90% Feb-12

Mar-08 n/a Mar-09 29.50% Mar-10 15.43% Mar-11 -4.93% Mar-12

Apr-08 n/a Apr-09 -34.40% Apr-10 -8.11% Apr-11 3.32% Apr-12

May-08 n/a May-09 53.30% May-10 0.70% May-11 -8.98% May-12

Jun-08 n/a Jun-09 23.60% Jun-10 20.60% Jun-11 -2.28% Jun-12

Jul-08 n/a Jul-09 10.11% Jul-10 10.80% Jul-11 5.19% Jul-12

Aug-08 n/a Aug-09 26.92% Aug-10 5.46% Aug-11 -15.24% Aug-12

Sep-08 n/a Sep-09 -0.32% Sep-10 14.91% Sep-11 -6.47% Sep-12

Oct-08 n/a Oct-09 -4.26% Oct-10 10.36% Oct-11 16.91% Oct-12

Nov-08 n/a Nov-09 -2.35% Nov-10 0.05% Nov-11 6.01% Nov-12

Dec-08 32.30% Dec-09 9.37% Dec-10 10.46% Dec-11 3.62% Dec-12

Total Compounded Return Since Inception: 1254.44%

Average Monthly Return Since Inception 8.30%

Example Cumulative Return By Monthly Balance (based on a 100K account)

Please send us an email via our contacts page for further information.

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