A good sign of a BAD forex broker is they would not allow you to hedge a position. This way they want to ensure either you loss at stop loss or loss all your capital by margin call.
No matter how good a trading strategy is, the accuracy is always about 85%. This is where money management comes in. It is always advised to use only 10% of your capital to trade.
The main strategy used by Turtle Rock ver 02 EA is by hedging 2 pairs - eur/usd and usd/chf. Since these 2 pairs have the best correlation factor.
Besides that, another strategies has been added, to hedge the previous positions at certain interval to avoid excessive drawdown.
Plus lot strategies also added in.
Since the correlation between eur/usd and usd/chf always move towards and away from perfect correlation factor of 1, Turtle Rock is preparing positions to profit when there is a gap between the move away and towards the correlation factor.
To have better result, it is maybe better to switch off your EA during heavy news (red level).
Future improvement will try to add in timer to swith the EA off during news hours.
Risk Disclosure, High Risk Investment
Margined Currency Trading is one of the riskiest forms of investment available in the financial markets and is only suitable for sophisticated individuals and institutions. An account with Interbank FX permits you to trade foreign currencies on a highly leveraged basis (up to approximately 50 times your account equity). In a standard account an initial deposit of $1,000 will enable the account holder to take a maximum position of $100,000 market value. (Please note that the minimum required to open an account is $2,500 for a standard account and $250 for a mini).
The funds in an account trading at maximum leverage can be completely lost, if the position(s) held in the account has a one percent swing in value. Theoretically, an account could lose more than the equity it contains, if the account is trading at maximum leverage and positions held in the account swing more than one percent in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that if lost will not significantly effect one's personal or institution's financial well beings.
Internet Trading Risks
In addition, there are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection.
