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Pay per profit

Zamolxis is an work in progress and it will always be, it suffers improvements on monthly basis. Then, a lot of stress tests follows and if it passes, the valid changes are added to the core algorithm and a new version is released.

It behaved very well during an year and a half, therefore I’d like to raise the stake and take Zamolxis project to the next level: an artificial brain made out of bayesian filters and neural networks. This artificial brain will monitor all timeframes instead of just one, log every change in the market and send trading signals accordingly.

However, a large database will be needed along with a huge computing power. The final product will communicate with the database residing on an amazon cloud and place trades for you.

Will you be interested in a monthly pay per profit scheme? If you win let’s say 100 pips, you pay me the cost of 10 pips, the losing months won’t be charged, no more yearly subscription.

Zamolxis v3.0 has just been released!

Long story short: Zamolxis has made a 128% profit during one year and 6 months period. Which means, ~3,000 pips, an account growth of 4.7% per month. This is near our target. We could have set a different target (higher profits), but high profits come with high risks and we can’t accept that as we’re aiming for long term profits.

Here, at longtermforex.com we treat forex as a business.

Bayesian filters for forex trading

I’ve been asked multiple times how exactly bayesian filters work. In layman terms, consider the following situation:

A month has 30 days. We know that, on average, 10 days / month are rainy days, so the probability of rain is 10 / 30  = 0.3 (30%). We also know that 15 days per month are cloudy days, so the probability of having a cloudy day is 15 / 30 = 0.5 (50%). It is obvious that every time we have a rainy day, that day is also a cloudy day because rain comes from the clouds, so the probability of clouds given rain is 100%.

Zamolxis report 2016

11 months passed since Zamolxis was launched. Before talking about its performances or what’s left to be done to make it even more profitable, I will say once more that forex should be treated as a business instead of a getting rich quick scheme.

For example, suppose you buy something cheaper, from China and resell it on ebay at a higher price.  Your net profit is 30%, I think it’s a decent amount. But there are some risks and expenses involved: website and hosting expenses, SEO expenses, rent expenses, employees plus the risk of not selling all your stocks.

If you trade forex you don’t have all that expenses but there are a few risks: drawdown, slippage, spread, VPS crashes, broker dependency. In every business, with only a few exceptions, risk is directly proportional to the amount of money you want to earn.

How to trade forex robots – Zamolxis case study

Today, Zamolxis robustness was tested, so was the patience of my customers.

How to turn $100 into $14,000

compounding

Turning $100 into $14,000 within 100 days, is it possible or is just a dream? My answer is: let’s try and see if it’s possible or not. My daily basis common sens tells me it’s impossible but with a little lack and knowledge this dream may become real. But first, I need a good strategy and what strategy is better than use the power of compounding?

I had a spare live account with only $47 left in it. I started messing around and last week I was left with $12. Then, I said to myself, well, this is a challenge, to get everything back, which I did plus some profit, at the moment I’m writing, my account balance is $90.

I’m willing to push the challenge further and try to raise that account as much as I can.

My strategy: risk no more than 5% / trade, stop loss = take profit.

Is forex robots investment profitable after all?

forex investments

Actually, should I ask if forex robot trading is profitable or not, but before asking this question we should talk about a criteria for comparing. Is forex robots investments profitable vs bank deposits? Definitely yes, it might be considering the fact that if the proper trading tools are used one could earn more than 5% per year. (that’s the average interest you can get from a bank). On the other hand if you put your money on a bank and leave it there is psychologically much safer than trading forex. Before going in details, let’s set up a few premises:

1. Never invest in forex what you can’t afford to lose. Forex is a very risky business, you could lose a large amount of your hard earned money so unless you have a solid inside tip, don’t trade what you can’t afford to lose.

The importance of relaxation while trading forex

Dear users, I haven’t had much time to write recently. In fact, I haven’t logged in into my vps until 2 days ago. And what have I found? I have found that, without my help (manual intervention) my AI based robot, Zamolxis, recovered within 2 months just like backtests shows. This is a good news and I hope until the end of the year I will have some profit on my small test account ($290). I need an entire year to live test this strategy (self learning neural network) before put it on my large account (and share it with other users if they’re interested).

In the meantime, let me remind you my backtest validation formula: optimize the robot for a few years then backtest it against unseen data. If the max historical drawdown is not changed, and profit distribution remains the same, then the strategy is valid, otherwise it isn’t.

The guide to forex profitability

forex profitability

The holy grail doesn’t exist but nobody can stop us searching for it, right? This blog exists just because so many systems are failing right as we speak. What makes a system a good system? Why do they fail? I’ve been searching for these answers for a long time but only since last year I’ve dedicated a lot of my spare time to investigate the market behavior. My scientific background (I have a degree in computer science and a lot of other math and statistic courses) helped me a lot in my quest. What I’m about to say can make the difference between trading blind and trading smart. I guarantee you that if you have the patience to read the article completely you’ll be rewarded at the end.

The questions

1. Why so many systems are failing?

They fail because they are not designed for real trading, they are designed to make money.

Forex robots experiment

Here is my forex robots experiment results: I really needed it in order to gather live inputs for my bayesian forex robot that tries to mimic the human brain in order to trade like an experienced trader. 4 months ago I posted a little experiment about trading using a forex robots portfolio. I took all my private forex robots (which I have reviewed in My forex robots portfolio section) and run all of them on a single $500 account.

Mistakes I’ve made

1. I intervened manually and that hurt.
2. I run 2 trend forex robots altogether (EURUSD and USDCHF) and that also hurt.