Frequently Asked Questions (FAQ)
I don’t have 1:100 leverage. Can I still trade your systems?
The Linear Quest and Evil Twins systems are intended for low leverage accounts. Linear Quest is a complimentary system included with the Basic subscription plan. We have tested this system on a 1:25 leverage account using a 0.01 lot size and the margin was still manageable with a $2500 dollar account. For reference, here are the Linear Quest symbols listed with available leverage from Oanda America:
USDCAD 50:1 (2.0%)
GBPJPY 33:1 (3.0%)
EURCHF 25:1 (4.0%)
To trade the Evil Twins system and be relatively safe from a margin call, you should have a $5000 starting balance under the above mentioned criteria. However, a larger balance reduces your risk exposure. Also keep in mind that you can disable trading on any symbol included in your subscription so you don’t have to trade them all.
Which systems are FIFO compliant?
The FIFO requirement stems primarily from Dodd-Frank legislation for which United States citizens must abide. This issue is mostly related to hedging accounts where each trade is created with a separate position ID. Exiting a position on a symbol requires closing trades in the same order as entered. Oldest to newest. MetaTrader 5 accounts from U.S. Brokers are automatically netting type accounts. Trades executed on a symbol accumulate on a single position ID so you only ever see one trade regardless of the number of buy orders (netting). Therefore, netting accounts are, by default, FIFO compliant. In the case of MT5 hedging accounts, all of our EA’s do close trades in FIFO order so technically there shouldn't be a problem. However, we have had problems with FIFO restricted hedging brokers when using stops. In general, if you are subject to FIFO requirements then you should have a netting account and subscribe only to our netting products. Namely, Linear Quest, Evil Twins and Meteor Tail. Alternatively, you could subscribe to any of our hedging systems and simply trade the hedge across separate accounts.
Will your systems pass Prop Trading evaluation and get me through the challenge phase (FTMO, MFF, Lux Trading, etc)?
Prop trading firms seek to evaluate your individual skills as a trader. Most firms do not accept copy trades or trades from commercially available EA’s. However, there are several firms where pretty much anything goes as long as you can turn a profit. Most firms employ a challenge model which is usually 30 days to make a 10% profit without a 5% daily drawdown. It’s the last part that’s really the challenge. Our lowest margin highest gainer system is Evil Twins. Use our backtest results and experiment with different lot sizes to get the desired risk / reward ratio. Set a personal magic number and comment identifier in the system config form (webapp). Hold off on starting the challenge until some pyramids have accumulated on a few symbols. Then open all the positions at full size on the first day.
With martingale systems time is your friend so the probability of success improves with a longer evaluation period. So try to sign up firms which have 60 to 90 day maximums. It’s best to select only the symbols and strategies which match the current market environment. Don’t trade all of the symbols in your package only the ones needed to win. We have found that lot size, time and luck are the most important factors in winning the challenge.
CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under — or over — compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.