Value for Money

BarrosMetrics Views: Value for Money

Today I am looking at this idea from two different angles.

The first from the trader’s point of view. Education is an important facet of success; and often the courses we like, and those that are likely to be beneficial, tend to be at the upper end of the price range. That’s why it’s a welcome surprise when I find a course that I find useful, and  is priced at less than I would pay for dinner here in Hong Kong.

Long time readers know I like Rob Hanna’ newsletter (Quantifiable  Edges). Although his style of trading and mine could not be more different, his approach serves to warn me when I being myopic. He has produced the Market Timing Course for US$50.00. The work is excellent and well worth you having a look at. Excellent value for money.

BTW, I receive no financial compensation for recommending the course.

Turning now to another view ‘value for money’……the US$.

I have long viewed FACTA as the possible Black Swan that will down the US stock market. Today, I read an article by Mark Nestmann, “Will the IRS Reschedule the Death of the Dollar?

His theme of the article: “I can’t think of a better way to scare foreign investors away from the US.

Something I call “FATCA contagion” would be even worse. In this scenario, since they couldn’t be completely certain that foreign recipients are FATCA compliant, US banks might start routinely deducting 30% from international funds transfers – and letting the IRS sort it all out.

You can probably imagine what this might do to the value of the US dollar. It could sink like a stone”.

The reasoning for his conclusion, bears thinking about:

“That’s a big reason China has signed agreements calling for the use of its currency, the yuan, in financial exchanges with numerous major countries including Germany, Russia, and India. Japan and India have signed a currency deal linking their currencies closer together. Saudi Arabia and other oil-producing states in the Middle East plan to end dollar-for-oil exchanges and instead settle deals with a basket of non-U.S. currencies and gold.

All these arrangements, and many more, lessen the world’s dependency on U.S. dollars”

5 thoughts on “Value for Money”

  1. Last year, in Oct/Nov, I attended a proprietary Forex course, invented
    and conducted by SIR Dr C.

    According to him, the Method & Style used in conducting the training
    classes are both patented and copyrighted world wide.

    Those who infringed the copyright will face heavy fine, jail and at the
    same time face big civil claim in court of law, for damages.

    I paid SGD500 x(1 + GST 7%) for the course.

    The course was heavily sponsored by a Forex broker. He told me he has received USD5000 from the broker because of me!

    The students were given 1 week to trade live using the MT4 demo account. They have to made at least 20 profitable closed trades. Also, all trades made are to be closed in profits. If the MT4 detailed report shows any closed or open losing trade, the student will fail the exam!

    I am aware that 3 students passed the exam, and will be awared with certificates (ranking from Degress Pass, 3rd Class Honours … to Supertrader.
    – one of them is Ray’s former HOS student.

    Those who passed the exam and keeping the Trading Commandments are supposed to trade in such a way in future that all trades made are profitable without losses!

    Is this value for money? 🙂

  2. Hi Paul

    Any one who is promising a career of trading without losing trades….well, let’s just say I’d have to attend the course to form an opinion.

    And one week to establish the validity of the system….that too is placed in my ‘to be proved’ dustbin. On top of that the students were using a demo account….????

    Finally, as for value for money…..well at least 3 would have thought so. How about you?

  3. hi Ray,
    1. The exam is not to “establish the validity of the system”, but to see if the students have “mastered” the strategy/method.

    I was told that even university professor who attended the course failed the first exam.

    2. Only those who have passed the exam and willing to keep the Trading Commandments are told to trade with Live Account
    – At least, they have 100% success rate with demo accounts
    – Many professional traders cannot achieve 100% success rate.
    – One of my course-mates is an experienced Forex Trading Coach. But he failed the exam.

    3. I only aimed for a pass for the exam. I did it and passed the exam in one trading day.

    “value for money”?
    – YES
    a. I traded 50 standard lots/per trade
    – EUR/USD 1 pip = USD500
    – First time, I ever experienced the joy/satisfaction/purpose of scalping

    b. First time, I have a feel of what trading method and training style which are patented and copyrighted world wide are

    c. Now I know of a Forex Broker which offered Islamic Trading Account
    – No rolling interests incurred, so that I could short AUD/USD, NZD/USD etc. for long!

    d. Also, the broker provides 1:500 leverage. Traders would have more capacity to withstand drawdown with that broker

    e. Before attending the course, I am aware of another trader who taught that all closed trades must be profitable.
    Though different methods, Sir Dr C “confirmed” the teaching
    – Trading can be closed with 100% success rate.

    This is the background:
    a. Why I asked you a few times if Peter Steidlmayer traded without stop-loss.

    b. (With 100% success rate) How could the traders be more wealthy using the right position sizing strategies

    I have read the books written by Ray Barros, Brent Penfold, Van Tharp, Kathy Lien and Daryl Guppy.

    Most likely, they would wonder if Paul has learned from their books! 🙂

    Cheers!

    Paul

  4. Hi Paul

    First off, congrats on passing the exam! Way to go!

    So far as 100% success:

    You can include me among the group who does not know successful trader with a 100% track record.

    Come back to me, say in 6-months to a year, with real-time trading records showing a 100% track record, and I’ll get you a ‘job’ with a prop house managing as much money as you can handle.

    I don’t want to rain on your parade, just inject a dose of reality….

    On the other hand, …..If you said that the method had a high win rate, I would not be sceptical.

    Traders Timeframe has an inverse correlation with win rate and a direct correlation with avg$w:Avg$l e.g. the shorter the timeframe, the higher the win rate,and the lower the avg$win:avg$loss rate.

    Indeed, most of the successful scalpers I know have win rates in the high 80%s to 90s% with AvgW:A$L at less than 1:1.

    That is a necessary function of the timeframe and method you are trading.

    The risk with ‘100%’ methods is they tend to rely on a reversion to mean. It’s true that the shorter the timeframe, the more likely this is will happen.

    But, you need only one trade where this does not happen, and you will undo months of positive trading results.

    Worse, unless you have pre-defined exit conditions, you are then faced with exiting under a condition of extreme stress- this makes a difficult decision, an almost impossible one.

    Love to say your results on the exam were impacted by some of my ideas – you know how I love to make a difference.

    But, not on this occasion. I have never ventured into the land of scalping for retail traders.

    Every success….

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