ForexMorningTrade System

[Tenapenny]

Is anyone using the manual FMT method for multiple pairs or is only EU & GU?

Can anyone link to the best threads in this 900+ post for settings/testing etc?

Thanks

It's only designed for cable (GBP/USD).

 

[deserteagle]

Hello,

Here you have the comparison updated.

Just some relevant data:

- Sets with 20BE have 10 winners since last loss.
- Set Desert Combo has 12 winners since last lost.
- Set DesertEagle has 70 pips weekly average in 2011.
- Set Desert Combo has won 36% of the account in 2011.
- Set New FMT has had the best performance last month.

Regards

 

[donm]

deserteagle,

Thank you for posting the weekly FMT spread sheet. This is very useful and organized information.

Regards

 

[wiseambitions]

Hi Wiseambitions
Still interested in the 10/40 scenario
Do you have data on how many consecutive losses...and the number of times it ocurred during the 6 month period

Hi I think the set had 10 losses during 6 months of which 2 were consecutive and that happened in early March. It had 3 losses during March and due to the wide R/R it is only 40 net pips up for the whole month, which is unusually low, whereas 40/40 was 280 up and 35/40 was 290 up (both without breakeven resetting) in my data

 

[tkbieber]

How do you report your income from a live taxable account, please? I am at a loss as to how to report profits from forex trading though not much. The tax filing deadline is fast appraoching, by the way.

I don't, and that, to me would be crazy as you may win today and loose it tomorrow and why would I pay tax on something NOT gained.
I don't pay taxes on gain until it reaches my bank. Keeping is simple.

Example: If I put in $10,000 and in 6 months the account grows to $16,000 and I withdraw $10,000, guess what, that is not taxable as it's not any "gain" according to bank records. Any withdrawals after that is gain and taxable (according to the IRS). But, that's just me. You know what everyone will tell you,, go to your CPA for details. The IRS is mostly ______, (fill in the blank) with little knowledge of what is constitutional. Don't get me started on this but there are those who think "Capital Gain" and "income" means anything earned. I'll leave you to research and discover things about tax from the book called, Cracking The Code that will give you a different incite as to the constitutional definition of "earned income".
As you can see, this topic just fires me up so I'll just leave it for you to draw your own conclusions.

 

[Doomberg]

michaelhryu / anyone else... there is a way round this completely, register yourself as a trading firm in somewhere like the Seychelles and any withdrawals go straight in to that account, there are a few benefits... the main one being that its

100% tax free!

If any of you would like a contact in the Seychelles give me a shout, costs about €600 a year for them to maintain the account for you, but a small price to pay if you are earning a lot, and no im not a vendor for them

 

[coral]

I don't, and that, to me would be crazy as you may win today and loose it tomorrow and why would I pay tax on something NOT gained.
I don't pay taxes on gain until it reaches my bank. Keeping is simple.

Example: If I put in $10,000 and in 6 months the account grows to $16,000 and I withdraw $10,000, guess what, that is not taxable as it's not any "gain" according to bank records. Any withdrawals after that is gain and taxable (according to the IRS). But, that's just me. You know what everyone will tell you,, go to your CPA for details. The IRS is mostly ______, (fill in the blank) with little knowledge of what is constitutional. Don't get me started on this but there are those who think "Capital Gain" and "income" means anything earned. I'll leave you to research and discover things about tax from the book called, Cracking The Code that will give you a different incite as to the constitutional definition of "earned income".
As you can see, this topic just fires me up so I'll just leave it for you to draw your own conclusions.

Although our version of the IRS is slightly better in Canada, that is exactly the way I handle it. I would never report as income the money that is still at risk or part of my original capital.

 

[coral]

Thank you DesertEagle, Wiseambitions and others who have given interesting stats on this system its variations. I am just back from Florida (yes I hung out with the old people during the winter, thawing out my frozen Cdn butt). I will run through some of the ideas and see what fits best for me. I will probably just increase the risk on the excellent default system, but may trade the 6:15 also. I have made some casino money now with the system, and I don't mind risking it and injecting a bit of steroids and see what happens, fully bearing in mind that this is a very slow marathon.

Thanks again to all.

 

[wiseambitions]

I'd just like to share a bit of information which tells me that in spite of a faltering start, the year to date, 1 January 2011 to 31 March has actually been better than in my simulations for the corresponding period in 2010 for most settings. The data for 2011 is collected daily and is as accurate as I am able to make it, based on 06.30 starts, and the prices of my own broker.

Setting Last year's in brackets

New FMT 35/40/BE 505 (235)
Old FMT 40/40 600 (440)
10/40 310 (140)
28/40 340 (480)
D/eagle 43/65/BE 512 (514)

Scroll back through the last 3 months and you'll hear a lot of who you'd think to be seasoned veterans saying "This system doesn't work any more", "Putting this robot back on the shelf", "Conditions have changed", "Chinese chopstick production etc...." If the system had been on sale it would have been the same 12 months previously, yet for those who kept strictly to the rules they would have come through with 1750 to 2000 pips, in a year, just for forgetting about 'News', 'Statistics' and every other factor that plays on your emotions.

Rolling 12 month production, April 3 2010 to April 2 2011

New FMT 1815 Profit factor 2.00
Old FMT 2040 PF 1.72
10/40 1210 PF 3.16
28/40 1744 PF 1.82
D/eagle 1598 PF 1.84


Long may FMT continue to deliver steady long term results! Have a great weekend folks.

 

[PipZombie]

How do you report your income from a live taxable account, please? I am at a loss as to how to report profits from forex trading though not much. The tax filing deadline is fast appraoching, by the way.

I report it as capital gains in the U.S.

 

[Doomberg]

I guess people who are in the UK / Europe are pretty lucky as its tax free to us, out of interest how much do you have to pay in tax? What % etc.. seems unfair that some countries would do that, must make trading harder to pay tax on it

 

[deserteagle]

deserteagle,

Thank you for posting the weekly FMT spread sheet. This is very useful and organized information.

Regards

You are welcome

 

[coral]

I guess people who are in the UK / Europe are pretty lucky as its tax free to us, out of interest how much do you have to pay in tax? What % etc.. seems unfair that some countries would do that, must make trading harder to pay tax on it

For me as a Canuck, it works out to about 20% on the Capital Gains route, and that will vary based on the individual's personal tax rate. Oh well, my mother never promised me that life would be fair anyway.

On a wider note, I would not attempt to evade taxes. I recall a few months ago, starting in Germany, that they discovered rich individuals were hiding funds in Swiss banks. The fire quickly spread, and I now see that our govt is pursuing similar individuals here. Various agreements are being made between havens and other countries to report those accounts. It's just not worth it IMO. We can go on and on about big corporations and loopholes, but the little guy just doesn't stand a chance. Besides, I figure if our servicemen and women in Afghanistan (and now flying in Libya) are paying income tax, I shouldn't be too upset at paying my share.

Don't want to get too far off topic, just my 2 pips.

 

[Doomberg]

Yeah evading it is not a good idea, however avoiding it is ha

 

[trader578]

Hello Trader 578

As a fellow Canuck, I have investigated this before, but you would benefit from a visit with a good tax accountant, preferably one who knows about trading (the visit is a tax-deductible expense). I believe that all world income must still be reported by Canadians, and this is what I have learned:

Option 1. Report trading income as normal income. Advantage - any annual net loss reduces other incomes, and you can fill out an extra form to claim all legitimate business expenses, including equipment depreciation, training courses, books, office space, you name it. Disadvantage - net gains are taxed at a higher personal income tax rate, i.e. anywhere from 25% to almost 50% or perhaps more, depending on your tax bracket.

Option 2. Report income from trading as capital gains, such as you would do for stocks, futures, etc. Taxed on half the gains, as you know. (Losses on the year cannot reduce other income, but can be carried over to future years against any profits. I have not done this carry-over before, and this should be checked for the latest rules.)

Option 3. Form a Trading business under your Provincial regulations and register as a home business. This costs about $250 where I live in NB, and can be done online. You would be taxed at a much lower corporate rate applicable to your Province, and would need to keep the proper records, etc. But you would need to check on any effect on insurance changes on the home, local municipal requirements (including effect on property taxes, etc). Municipalities can be weird with stuff like this, but I have not followed through on this idea yet.

That's the sum of my knowledge, but a good tax specialist will give you a lot of confidence. Be careful, some of them are nothing more than tax return specialists and really know nothing about the trader's needs.

I hope this helps in a some way. Pls let us know if you learn anything new.

Al

Thanks for the info Al. Also, I found 6 pages of reading for Forex Canucks only.

http://forums.babypips.com/newbie-island/479-how-much-tax-forex-trading-canada.html

 

[michaelhryu]

If any of you would like a contact in the Seychelles give me a shout, costs about €600 a year for them to maintain the account for you, but a small price to pay if you are earning a lot, and no im not a vendor for them

I'd like to hear more about it. Would you PM me the contact info, etc., please?

 

[michaelhryu]

I don't, and that, to me would be crazy as you may win today and loose it tomorrow and why would I pay tax on something NOT gained.
I don't pay taxes on gain until it reaches my bank. Keeping is simple.

Example: If I put in $10,000 and in 6 months the account grows to $16,000 and I withdraw $10,000, guess what, that is not taxable as it's not any "gain" according to bank records. Any withdrawals after that is gain and taxable (according to the IRS). But, that's just me. You know what everyone will tell you,, go to your CPA for details. The IRS is mostly ______, (fill in the blank) with little knowledge of what is constitutional. Don't get me started on this but there are those who think "Capital Gain" and "income" means anything earned. I'll leave you to research and discover things about tax from the book called, Cracking The Code that will give you a different incite as to the constitutional definition of "earned income".
As you can see, this topic just fires me up so I'll just leave it for you to draw your own conclusions.

I know I am not crazy. And I hate to pay taxes too. And yet I feel I would have to do something about gain, be it from forex, or something else.

What would you do, if your live forex account balance had been $10,000 on January 1, and, fortunately, it grew to be $15,000 by the end of year? You wouldn't worry about the gain of $5,000 when it comes to tax filing, would you? Any chance of getting caught by the IRS when you don't pay taxes on such gains? I am just curious.

 

[JustinSydney]

Hello all. Any advice or opinions would be welcome here.

I am with Go Markets as a broker and have two accounts running identical settings using FMT. On the 23rd of March I think that most of us who have a TP of 35 would have had a win. However, I had both of my accounts open a trade, one a size of 5.5 lots and the other a size of 13.7 lots. The smaller trade closed at profit target while the larger trade although the price action was past my profit target on the high and the close of one candle and the open and high of the following candle did not close the trade at TP and ended up falling back down to a BE trade.

Does anyone have any idea why this may have happened. Is this broker related. Is the broker ripping me off or what?

 

[eddie69]

possibly broker is your enemy # 1.

 

[trader578]

Hello all. Any advice or opinions would be welcome here.

I am with Go Markets as a broker and have two accounts running identical settings using FMT. On the 23rd of March I think that most of us who have a TP of 35 would have had a win. However, I had both of my accounts open a trade, one a size of 5.5 lots and the other a size of 13.7 lots. The smaller trade closed at profit target while the larger trade although the price action was past my profit target on the high and the close of one candle and the open and high of the following candle did not close the trade at TP and ended up falling back down to a BE trade.

Does anyone have any idea why this may have happened. Is this broker related. Is the broker ripping me off or what?

I have a Go Markets account also, and I have had some close calls with them also - although I am not yet trading more than 2 lots. In your case, it is possible that if the price went up just a few fractions of a pip beyond your profit target, there may just not have been enough volume to fill your 13.7 lots because the fills may be all-or-none. I would suggest talking to them on their live chat about your situation. And if you can copy and paste your conversation here, it would be interesting to see what their excuse is. Cheers.