Ok, as promised I am posting the Excel file of the data I collected from TAB's 2007 results. It can be downloaded from this link. I had to upload the file to a free hosting website called MediaFire since I can't seem to attach files to this blog.
Let me explain the file a bit. The first tab, "C2 Performance 2007", is quite basic. I simply pulled the trades that Collective2 showed for each month of 2007. The basic data includes total number of trades, total volume for the month, and total number of pips earned or lost. For example, in February there were a total of 29 trades, volume of 1,160k or 116 mini lots and 578 pips profit. A very helpful thing that I think is vital in examining any system for auto-trading profitability is calculating the total pips profit or loss by including the auto-trading fee. Since the auto-trading fee is a commission of $1/mini traded this was simple to calculate. TAB trades in lots of 4 minis so it will cost us $4 for each trade. By multiplying $4 by the number of trades during the month and subtracting from the total number of pips gained, we get our actual profit or loss in pips. But if you are actually paying attention, you will notice that the formulas used to compute the month's total pips do not multiply the number of trades by 4 to get the total commission. Instead, it just subtracts the total number of trades. The reason for not multiplying the fees by 4 is because we aren't multiplying our number of earned pips by 4. I calculated each trade from buy to sell or vice versa for the number of gained pips. If this is unclear, feel free to drop me a note for clarification.
The second tab, "Hyp. Portf." for hypothetical portfolio, is a bit more detailed. Please read the comments for the underlying assumptions and initial portfolio parameters. You will notice that I created this and assumed that I would be increasing my trading size (or volume) as my account balance grew. I used data from the first tab to calculate total monthly volume and this includes the increases in trade size. It is crucial to accurately include this number as it represents how much we will pay each month in auto-trading fees and has a direct affect on the profitability of our trading. The notes underneath each month represent what size increases I made at the end of that month that would be effective starting the next month.
Fore example, after January 2007 there was not enough profit to increase our trading size so we kept trading in blocks of 40k per trade for the month of February. February was a great month, however, and we were able to increase our trading size for GBP/USD and EUR/USD for the month of March. Changes in volume for the two pairs would be reflected in the March calculations. Please see the notes in the spreadsheet for my methodology as it pertains to increasing trading sizes.
I hope you can now appreciate the amount of leg-work and research I put into studying this system before risking any money. I did not blindly trust the system's past performance without my own investigation and inclusion for added fees that I will incur by auto-trading it. This is where I believe so many traders coming to FX-Auto fail. That is, they lack the motivation to do any due diligence.
Let me explain the file a bit. The first tab, "C2 Performance 2007", is quite basic. I simply pulled the trades that Collective2 showed for each month of 2007. The basic data includes total number of trades, total volume for the month, and total number of pips earned or lost. For example, in February there were a total of 29 trades, volume of 1,160k or 116 mini lots and 578 pips profit. A very helpful thing that I think is vital in examining any system for auto-trading profitability is calculating the total pips profit or loss by including the auto-trading fee. Since the auto-trading fee is a commission of $1/mini traded this was simple to calculate. TAB trades in lots of 4 minis so it will cost us $4 for each trade. By multiplying $4 by the number of trades during the month and subtracting from the total number of pips gained, we get our actual profit or loss in pips. But if you are actually paying attention, you will notice that the formulas used to compute the month's total pips do not multiply the number of trades by 4 to get the total commission. Instead, it just subtracts the total number of trades. The reason for not multiplying the fees by 4 is because we aren't multiplying our number of earned pips by 4. I calculated each trade from buy to sell or vice versa for the number of gained pips. If this is unclear, feel free to drop me a note for clarification.
The second tab, "Hyp. Portf." for hypothetical portfolio, is a bit more detailed. Please read the comments for the underlying assumptions and initial portfolio parameters. You will notice that I created this and assumed that I would be increasing my trading size (or volume) as my account balance grew. I used data from the first tab to calculate total monthly volume and this includes the increases in trade size. It is crucial to accurately include this number as it represents how much we will pay each month in auto-trading fees and has a direct affect on the profitability of our trading. The notes underneath each month represent what size increases I made at the end of that month that would be effective starting the next month.
Fore example, after January 2007 there was not enough profit to increase our trading size so we kept trading in blocks of 40k per trade for the month of February. February was a great month, however, and we were able to increase our trading size for GBP/USD and EUR/USD for the month of March. Changes in volume for the two pairs would be reflected in the March calculations. Please see the notes in the spreadsheet for my methodology as it pertains to increasing trading sizes.
I hope you can now appreciate the amount of leg-work and research I put into studying this system before risking any money. I did not blindly trust the system's past performance without my own investigation and inclusion for added fees that I will incur by auto-trading it. This is where I believe so many traders coming to FX-Auto fail. That is, they lack the motivation to do any due diligence.
1 comment:
Hi. The link to the Excel file no longer exists. Do you mind reposting it? I want to see what TAB's money management strategy was. I would really appreciate it. Thanks!
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