Intensive Review Duellatorus review by Eric Alyea

[Eric Alyea]

Noon, Day 2 of seminar

Noon, Day 2 of seminar

First of all I have to apologize and a correction to make. I had a couple of beers last night and wrote down the wrong number. The number that I quoted in the above post as 265.89 was account dollars up not pips. I started off doing 10,000 unit trades and switched to 50,000 playing around at night. So, pips trading at 10,000 units was 138.37pips and at 50,000 units was 22.5 pips for a day total of 160.87 pips.
Again I apologize.

On to today’s “Zen Trade” session:

I am in process of writing up how’s why’s and what we are trying to do. But for right now numbers talk. Using an “Oanda” demo account, EUR/USD, I started at 08:55, stopped at 11:07 CST. My demo account balance started at $100,372.87, ended at $101,000.65, for a profit of $627.78, scoring 125 pips.

We’ll be going back to “Counter Trend Pivot Trading” this afternoon. I was sort of slow on taking my “Zen Trading” notes yesterday and we didn’t get started on it till 17:00 and shut down at 19:00.

I’m going to try to post my “Trade Transaction History” for Fri. 2-19-10

 

[Eric Alyea]

End of Friday trade and training session

End of Friday trade and training session

Time to catch up on notes and procedural documentation. My eye’s are shot. I’ll sleep good tonight. I just counted the number of closed trades during the “Live Trade" session, 78. As stated above that gave my demo account a profit of $627.78, scoring 125 pips. I’m trying to down load my transaction history.

 

[RahmanSL]

Eric Alyea,

Where & when can I read the complete review of your test records & results? I find your daily experiences post very interesting and relevant and shall be "trailing" your post.

All the best!

P/S: FXCM is listed as a SCAM broker over at “Forex Broker Fraud & Scam Reviews” site, and there are quite a lot of bad reviews about them posted in FPA too.

 

[Eric Alyea]

3rd day, Sat. Morning

3rd day, Sat. Morning

At this time I still have two days left in the seminar. I was working on notes last night but had to choose sleep so I would not make the “I can’t hold my eye’s open or think mistakes” that I did at the end of yesterday (they worked me). I would estimate that Wednesday the 24th (I’m back in the VA Hospital the 23rd) to have the first of a series of thing out. Then comes the application of daily live demo trades and then real money. This thing will take a year for proof.
So, to answer your question, reviews out by next Wednesday and more in the next two week. Then a minimum of a post every Saturday for the next year to report the weeks trade results.

Replying to the broker note:
I have been only doing live demo trades on “Oanda” so far. FXCM (UK) was listed above but I haven’t used it that much. I will let Josh (FPA name "jcris522) who is sitting across the table from me now address the broker questions. I am not yet qualified for that.

Thanks for the interest

 

[jcris522]

Scam Brokers

Eric Alyea,

Where & when can I read the complete review of your test records & results? I find your daily experiences post very interesting and relevant and shall be "trailing" your post.

All the best!

P/S: FXCM is listed as a SCAM broker over at “Forex Broker Fraud & Scam Reviews” site, and there are quite a lot of bad reviews about them, posted in FPA too.

I checked out the site you referenced and browsed through the comments. None of those individuals, it seems, had much knowledge about trading nor have they been in the markets for very long. I have been trading Forex for six years and been with multiple brokers- FXCM, Oanda, Marketiva and others. I have also personally worked for a major Forex broker here in the States. I have never had any major problems with any of them.

Problems usually arise when the trader makes a mistake, loses money and wants someone to blame it on. Legitimate mistakes or errors on the broker side are taken very seriously and resolved within a certain number of days as required by the National Futures Association (NFA). If the proper actions are not taken, the trader can take their complaint to the NFA who will investigate and, if necessary, dole out significant fines.

While no Forex broker is perfect, the "chop shop" scam brokers are a thing of the past, particularly here in the US. The NFA has made sure of that.

 

[RahmanSL]

Thanks Eric for that reply and you can be assured I shall be following all your posts.
Must be real tiring and exhaustive for you with your condition. I can actually “feel” your vibe when reading your post.

Jcris522, I gather from your reply that we can brush that “SCAM” attached to FXCM over at that site; yah?
They are regulated by NFA, CFTC, and FSA UK, and have segregated account too. Been in business since 2000, and have International offices in France, United Kingdom, Australia, Japan, Hong Kong, United Arab Emirates, ad Italy.
Looks very impressive indeed!

However, FXCM didn’t get too good a rating in FPA either with only two stars. Must be a lot of Newbies posts lamenting their losses through inexperience trading; yah?

 

[Eric Alyea]

Forex Tester 2

Forex Tester 2

Early on Forex Tester 2 (FT2) Forex Tester Software - Professional Forex Training. Teach yourself forex trading. was said to be needed in Duellatorus’s procedural methodology. I had some minor problems in my initial use of the Forex Tester 2 (FT2) program. The tutorials were lacking the detail needed for a novice to become functional independently. Searching the questions I had on the member forum was what got me over the initial hump. (What do you expect from programers though, a good program AND a tutorial. I would rather have a good program and find a better teacher.)

The reason given for the use of FT2 was:
#1. Back testing is the key to understanding your chosen currency pair and it’s price action tendencies (flow).
#2. People are so afraid of losing money in stead of just accepting in the beginning that at some time losing money “WILL HAPPEN”. Through back testing you see how your strategy plays out long term with the historical data of the 10 real years past. You learn to accept that there will be a loss, but can practice how to recover before and while the loss is happening.
#3. You can practice trades any time, weekends, chosen years, what ever, slow it down, speed it up, and go back & forth.
#4. Duellatorus has the view that if you have done your home work. Which means, practiced a chosen currency pair with the strategy you are investigating through the 10 year actual history of that pair. Then you are practiced and ready for “Real Money Trading”

I’ll be going into more detail later. But to make a post to close the seminar I will give the following stats. I used Forex Tester 2 (FT2) to back test a trade methodology Duellatorus calls:

Counter Trend Pivot Point Trading

The pair selected was GBP/JPY. Test data starting from 2001. I followed the rules with them looking over my shoulder. The crucial point to the training is the evaluation of “Pivot Points” determining the “Take Profit” level. A checklist has been developed to just plug in the numbers to the rules determining “Lot” size and use.
I’m tired now and have to get up a 04:30 to take them back to the airport. I am just going to do a copy and paste of the year and a half of testing I did in 3 days. I started with a $10,000 opening balance.

Days processed=557
Months processed=18.57
Total trades=382
Profit trades=382
Loss trades=0
Trades/day=0.69
Trades/month=21
Profit trades/month=21
Loss trades/month=0
Max profit trade=983.65
Max loss trade=0.00
Net profit=39901.16
Gross profit=39901.16
Gross loss=0.00
Profit/month=2149.08
Average profit=104.45
Average loss=0.00
Max drawdown=11628.84
Profit factor=0.00
Return, %=399.01
Max lot used=1.6
Restoration factor=3.43
Reliability factor=0.18
Profit probability, %=100
Loss probability, %=0

 

[cowmadagan]

0 losing trades? I have no doubt you're telling the truth, but 21 winning trades per month with no losers...
It's not dealing with massive stoplosses or no stoplosses at all, is it?

 

[jcris522]

Training Complete

The training has been completed and it is now up to Eric to complete his backtesting on the gbp/jpy pair. As soon as he completes this, he will be ready to trade live.

I have no doubt that Eric will become an extremely successful Forex trader. He is exceptionally detail oriented and excellent at creating a plan and sticking to it. He proactively created checklists throughout the course of the training in order to keep himself on track, and with the amount of notes he took and the thoroughness of his notes, he could create an invaluable trading manual.

We want to say thank you to Eric for opening up your home to us and participating in the training. We had a fantastic time and simply could not have asked for a better "trainee." We very much look forward to working together with him for a long time to come.

I know what many of you will be thinking as Eric continues to posts results and updates, especially when he starts his live account. Disbelief. Some of you have even already wrote in expressing your concerns about Eric's backtesting results. This is something we completely expected.

Simply stated, what we teach is real and brings in significant returns. We teach a very aggressive strategy in which margin calling the account is always a possibility. Nevertheless, through various money management strategies, we have fine tuned our methodology so that it is extremely rare. Furthermore, we always set aside part of our trading funds so that we can replenish our account in the case of a catastrophic loss.

I want to stress here that we do not just teach a strategy, technique, method, etc. We teach the most important aspects of Forex trading--proper psychology, money management, backtesting, and accountability. It truly doesn't matter how sound of a strategy you trade; if you haven't mastered the above, you will never become a successful full time trader.

UPDATE: Concerning the below comment, the website is now live and can be viewed

Lastly, we apologize for the delay in the launch of our website, www.duellatorus.com. Apparently the company is in the process of moving servers but we, nevertheless, anticipate the site going live in the very near future.

In the mean time I am available here for further questions, of feel free to reach me at my personal email address, joshua.hauck@gmail.com.

 

[Eric Alyea]

First of all I want to thank Josh (FPA id. “jcris522") and Corbin for being willing to teach their methodology and principles to me as a test subject.

I’m was planning on presenting my eval in the following stages:

1. “Zen Trading” This is something every body can do (good for newbie’s) and it’s an enjoyable way to get trading discipline and built trading confidence.
2. “Forex Tester 2" A program intro/eval
3. “Back Testing with Forex Tester 2" Philosophy and practice, What you should get from it.
4. “Counter Trend Pivot Point Trading” overview
5. “Saturday Post’s” What happened during the week with demo and/or live trading.

Learning the philosophy of picking a “Take profit” level was the biggest reason for my zero losses so far. (Don’t stand on the line. Pick one side or the other and go conservative for the win)
I actually chose to try to get a “Margin call” so we could discuss account rescue procedures. The margin got down to 225% (and the max drawdown) but the conservative “Take Profit” level cashed out for a profit.