Freedom Rocks

FXLoot Review:

 

One of the ways FR generates profits is by collecting the daily interest that accrues as long as there is an open trade utilizing certain pairs.  This interest builds up in the account and is earned no matter what happens with the individual trades or the equity fluctuations.

The second way FR generates profits is by ALWAYS buying low and selling high. 100% of our trades are profitable eventually when the market corrects. As the market goes up and down we are buying low and selling high on BOTH pairs. That means we are getting DOUBLE the profit each time the market corrects. Add this to the INTEREST paid daily and you can see why we are all quite excited about this system.

This system utilizes 2 or more currency pairs that generally move in opposite directions.

I say GENERALLY because there are certain times when the 2 pairs will move in the same direction or, one pair will move faster than the other. The EUR/USD and CHF/USD, for example, generally move in opposite directions 95-98% of the time. When they move out of sync in your favour you will see an equity gain. You are just lucky. If they move out of sync against you will see your equity go down. You are just unlucky.

But, this up and down fluctuation in your equity numbers are very normal with this kind of hedging and is nothing to be concerned with because you are always getting daily interest and buying low and selling high. THAT is how we know the system is working and we can print out a report any time to prove it to ourselves or anyone else.

A few of the advantages of using the FR system are:

• Only a few minutes a week to monitor and reset
• No software required
• No charts or graphs to read
• System tells you what to do and when to do it
• Tells you exactly how many lots to buy or sell
• Always buy low and sell high
• Provides exact buy and sell points
• Broker executes the trade and alerts you
• Automatically calculates new buy and sell points
• Alerts you by text message or e-mail
• No risk of missing a trading opportunity
• No need to monitor trades all day long or even look
• No need to run to your computer
• PLUS a second way to make money on trading (Interest)
• Many other programs charge thousands for training and in home study courses.
• Our program is just $100 per month with a $25 setup and no long-term commitments.
• You can cancel at any time without penalty
• Free demo accounts that work like real accounts
• Practice all you want without risking a penny
• No prior trading experience necessary
• No research needed
• Online video with detailed instructions and screenshots
• Skills can be learned in minutes
• Select virtually any interest rate you desire on your portfolio
• You can place all trades and have 100% control
• You control your risk levels and 100% of your money

Unfortunately, no trading model is perfect. So, what is the downside?

Well, first of all it is important to know that ALL trading programs come with some level of risk.  In fact, no matter where you put your money, even under your mattress, there is risk. But, the FOREX market has unique risks and it is important to know what they are and that we cannot avoid these risks. We can only manage them.

One way to think of it is that when you get into your car and drive to work you know you are taking a risk. You could get killed. You know that. But, every day you take the risk knowing that most likely you will get to work every day.

However, you also know that if you speed, drink and drive, talk on the cell phone, forget your glasses, etc, etc. you are INCREASING your chances of experiencing a disaster. When driving a vehicle there are many ways to reduce risk and increase safety. In FOREX it is the same.

On the safety spectrum the FR system is likely driving a Hummer in rush hour. It is like a tank compared to most other systems 'on the road'.

Yes, there are risks. The main one being that you could get a margin call. But, even here we are not totally at the mercy of the market. There are ways to avoid a margin call should we experience another Shanghai Meltdown as happened on March 5th, 2007.

1. We can reduce the chances of getting a margin call firstly by keeping our margin DOWN so our volatility is low. Low volatility means lower risk and usually a lower return (still better than most professional money managers can get for you).


2. We can inject money into our account further reducing the margin if we feel the market is out of control temporarily as on March 5th. If you are taking excessive risks it would be VERY wise to have a side account with funds in it that you can just move over to your main account to lower your margin further.


3. Put in sell orders countering our open trades. The cost is that we pay interest instead of get it while the market stabilizes. This is a small cost to allow us to just wait out any extreme market conditions. Once the correlations come back to normal we take off our sell positions.

#2 and #3 are rarely, if ever, going to be necessary if you do #1, ie just keep your margin low.

There may come times when we will have to sit on negative position for extended periods of time waiting for them to go in the direction we desire.  Generally this is no longer then a week or so, but it could take longer.

During those times, liquidity of the account will suffer. What this means is that even if you are not going to take a loss, you may have to wait awhile for the market to correct if you want to make a major withdrawal. That is why we stress this is an LONG TERM INVESTMENT STRATEGY and not a daytrading system or a guaranteed monthly income approach. We have to be able to weather the down times as well as the good times while continuing to earn interest daily and buy low and sell high.

Even when the equity is down the system is working in our favour.

Although from time to time we find ourselves holding on to negative positions, there is very little to worry about. These trades always rebound, but I'm sure there are those who might find this a little disconcerting. Not to worry. As long as you are far away from a margin call situation you should normally be able to just ride it out. Some people even put MORE money in at this times knowing that WHEN the market DOES correct they can make a handsome profit on the way up and then lock it in.

Typically our trades recover quickly and the average negative trade we carry is less than -10%.  The largest negative trade balance I have ever experienced was this past March when we experienced the largest market crash in more than a decade. But, as you can see I am still here and it turned around quite nicely.

The only real downside of this type of trading is that we may have to hold on to negative trade for an extended time while the market corrects itself.  In reality this is not really a big deal unless you are in desperate need for liquidity at the time when this happens.  Most people just want to compound their accounts for maximum growth potential anyway. This is the first time you will be able to do that in a safe and secure way.

So, I hope that helps to grasp this system a little better. If you have any questions feel free to contact me.

 

• Go to the Freedom Rocks website