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foundhorizon · 27-07-2003, 17:24

Hello MoneyTec users,

I am currently in the process of gearing up a fee-based recommendation service, FoundHorizon, complete with an interactive website and daily signals sent out via a variety of mediums including email. As many of you may know from experience, setting up a new business is not an overnight process when you do things the right way. But being both eager to begin sharing my research and building a potential customer base, I would like to take advantage of the recommendation forum here on moneytec.com to provide readers with a full preview. So until my site is up, running and able to accept subscribers, I will be posting my FULL trading recommendations here every trading day, exactly as they will given to a paid subscriber in the future. What follows is a trading guide to teach you to exactly how to interpret and use the signals.

Trading Guide

Data Source
First of all, I think it is very important to establish a universal point of reference with regards to forex pricing data before any valid discussion of trading levels can begin. In my experience, far too many signal providers post trades and results based on unknown or mixed data sources, leaving customers to wonder why their trades don't seem to work out quite the same way. I choose not to play that game. It doesn't really matter what source you pick but it matters that you pick one and live by it. I have decided to use CMS (www.cms-forex.com) as the reference data source. I am not providing any endorsement of CMS but because I use them I will be able to verify any disputes over entries and exits easily. Plus, the CMS platform can be downloaded and run in demo mode by anyone wishing to follow my signals. The charts are also the only ones I've found that allow the user to view the chart as bid or ask separately, which is very useful. Therefore, all buy orders will be based on the CMS ask and all sell orders on the CMS bid. This removes all doubt from the signals. If you find any mistakes in my posted levels compared to CMS, you can let me know and they will be corrected. This is the kind of unambiguous service I would expect so I'm practicing it as well.

Pairs
I will be posting signals for the ten most liquid currency pairs:
EUR/USD
USD/JPY
GBP/USD
USD/CHF
EUR/CHF
EUR/GBP
EUR/JPY
AUD/USD
NZD/USD
USD/CAD
Not all of these pairs will have signals every day but at least one usually will. WARNING: Pairs giving signals on the same day are highly likely to be correlated and are therefore prone to the same market forces. Do not expect them to hedge each other. Divide risk evenly across multiple pairs. The more pairs in a day, the less risk per pair, as a rule of thumb. Or, in other words, don't risk 5 times as much on a five signal day as a one signal day.

Time
Another big problem for customers trying to follow a signal service is not knowing exactly when a signal will occur. The whole reason you choose to trade daily signals is so that you don't have to sit in front of a screen all day. FoundHorizon signals, however, will be posted before the same time each day. Because of email lags and the unknown number of pairs I may have to examine on any given day, I can't say that signals will be sent out or arrive at an exact time, but they will be posted before 18:00 ET (US & Canada) (22:00 GMT in the summer). But, so that no one has to take time out to constantly check these posts or their email before then, no signals will become active until 18:00 ET and the performance will reflect this rule. Therefore, any signal filled before that time will not count as a valid trade. Now you don't have to waste time checking for a new set of signals.

Signals
Signals for each pair will either be no signal at all (OFF) or a set of two signals, buy and sell, plus the stops and targets for each. For example:

EUR/USD
Buy 1.1516 Target 1.1554 (+38) Stop 1.1469 (-47) 50% 1.1535
Sell 1.1429 Target 1.1381 (+48) Stop 1.1471 (-42) 50% 1.1405

The entry levels will always be stop entries, both above and below the current market. The numbers after the target and stop levels are the pips gained or lost at these levels. Once an order is filled, the opposite order remains active and can be filled later if the first trade is stopped out and the market continues through the second entry. Any unfilled trade should be cancelled by 17:00 ET (21:00 GMT summer) while open trades should remain open until the target or stop is reached or until otherwise updated in a new signal. This can be easily accomplished with the CMS software if orders are entered as DAY orders and not GTC. This way, unfilled orders will be automatically removed at 17:00 ET.

Profit Protection
Managing open trades can involve as little as opening and closing the trades at the set times or it can involve some occasional profit protection. To account for these two styles, two results will be given for each trade: one for no profit protection and another involving a set of profit protection rules. These rules are:

1) When the ask (bid) reaches the target in a long (short) trade, move the stop to protect 50% of the profit potential ((target+entry)/2). When this calculation gives half pips, then set the stop of the whole pip that is farthest from the target, e.g. 1.14815 becomes 1.1481.
2) When the bid (ask) reaches the 50% level for a long (short) trade, move the stop to breakeven.

The 50% level will be listed at the end of each signal, as shown above. I will track rules 1 and 2 both separately, combined and neither so that you can see the results of different protection methods.

Conclusion
Hopefully, that should be enough information for you to follow these signals in a demo account without much help. That said, do not hesitate to post replies to any signal post and I will answer them in a timely fashion.

27-07-2003, 17:24	#1
foundhorizon level 2 Join Date: Jul 2003 Posts: 117 Downloads: 0 Uploads: 0 Rep Power: 0	Introduction & Trading Guide Hello MoneyTec users, I am currently in the process of gearing up a fee-based recommendation service, FoundHorizon, complete with an interactive website and daily signals sent out via a variety of mediums including email. As many of you may know from experience, setting up a new business is not an overnight process when you do things the right way. But being both eager to begin sharing my research and building a potential customer base, I would like to take advantage of the recommendation forum here on moneytec.com to provide readers with a full preview. So until my site is up, running and able to accept subscribers, I will be posting my FULL trading recommendations here every trading day, exactly as they will given to a paid subscriber in the future. What follows is a trading guide to teach you to exactly how to interpret and use the signals. Trading Guide Data Source First of all, I think it is very important to establish a universal point of reference with regards to forex pricing data before any valid discussion of trading levels can begin. In my experience, far too many signal providers post trades and results based on unknown or mixed data sources, leaving customers to wonder why their trades don't seem to work out quite the same way. I choose not to play that game. It doesn't really matter what source you pick but it matters that you pick one and live by it. I have decided to use CMS (www.cms-forex.com) as the reference data source. I am not providing any endorsement of CMS but because I use them I will be able to verify any disputes over entries and exits easily. Plus, the CMS platform can be downloaded and run in demo mode by anyone wishing to follow my signals. The charts are also the only ones I've found that allow the user to view the chart as bid or ask separately, which is very useful. Therefore, all buy orders will be based on the CMS ask and all sell orders on the CMS bid. This removes all doubt from the signals. If you find any mistakes in my posted levels compared to CMS, you can let me know and they will be corrected. This is the kind of unambiguous service I would expect so I'm practicing it as well. Pairs I will be posting signals for the ten most liquid currency pairs: EUR/USD USD/JPY GBP/USD USD/CHF EUR/CHF EUR/GBP EUR/JPY AUD/USD NZD/USD USD/CAD Not all of these pairs will have signals every day but at least one usually will. WARNING: Pairs giving signals on the same day are highly likely to be correlated and are therefore prone to the same market forces. Do not expect them to hedge each other. Divide risk evenly across multiple pairs. The more pairs in a day, the less risk per pair, as a rule of thumb. Or, in other words, don't risk 5 times as much on a five signal day as a one signal day. Time Another big problem for customers trying to follow a signal service is not knowing exactly when a signal will occur. The whole reason you choose to trade daily signals is so that you don't have to sit in front of a screen all day. FoundHorizon signals, however, will be posted before the same time each day. Because of email lags and the unknown number of pairs I may have to examine on any given day, I can't say that signals will be sent out or arrive at an exact time, but they will be posted before 18:00 ET (US & Canada) (22:00 GMT in the summer). But, so that no one has to take time out to constantly check these posts or their email before then, no signals will become active until 18:00 ET and the performance will reflect this rule. Therefore, any signal filled before that time will not count as a valid trade. Now you don't have to waste time checking for a new set of signals. Signals Signals for each pair will either be no signal at all (OFF) or a set of two signals, buy and sell, plus the stops and targets for each. For example: EUR/USD Buy 1.1516 Target 1.1554 (+38) Stop 1.1469 (-47) 50% 1.1535 Sell 1.1429 Target 1.1381 (+48) Stop 1.1471 (-42) 50% 1.1405 The entry levels will always be stop entries, both above and below the current market. The numbers after the target and stop levels are the pips gained or lost at these levels. Once an order is filled, the opposite order remains active and can be filled later if the first trade is stopped out and the market continues through the second entry. Any unfilled trade should be cancelled by 17:00 ET (21:00 GMT summer) while open trades should remain open until the target or stop is reached or until otherwise updated in a new signal. This can be easily accomplished with the CMS software if orders are entered as DAY orders and not GTC. This way, unfilled orders will be automatically removed at 17:00 ET. Profit Protection Managing open trades can involve as little as opening and closing the trades at the set times or it can involve some occasional profit protection. To account for these two styles, two results will be given for each trade: one for no profit protection and another involving a set of profit protection rules. These rules are: 1) When the ask (bid) reaches the target in a long (short) trade, move the stop to protect 50% of the profit potential ((target+entry)/2). When this calculation gives half pips, then set the stop of the whole pip that is farthest from the target, e.g. 1.14815 becomes 1.1481. 2) When the bid (ask) reaches the 50% level for a long (short) trade, move the stop to breakeven. The 50% level will be listed at the end of each signal, as shown above. I will track rules 1 and 2 both separately, combined and neither so that you can see the results of different protection methods. Conclusion Hopefully, that should be enough information for you to follow these signals in a demo account without much help. That said, do not hesitate to post replies to any signal post and I will answer them in a timely fashion. __________________ Good trading, foundhorizon DISCLAIMER - The information in this post is provided for personal, educational, and informational purposes only and does not constitute a recommendation or endorsement with respect to any real investment. While all information is derived from sources I deem reliable, I do not guarantee its accuracy or completeness. Such information and the opinions expressed are subject to change without notice. Individuals who make investment decisions based on what they read here do so at their own risk and cannot hold anyone but themselves responsible. I may have a long or short position in the currencies mentioned or may at any given time purchase or sell those currencies in the open market or otherwise. Last edited by foundhorizon : 29-07-2003 at 12:48.