No non sense Forex trading.
Low leverage, low frequency trading.




Our beliefs

We believe in being modest and not greedy.
We believe in long term targets with low but steady returns.
We are not in the market for the excitement.
We do not believe in technical analysis, day trading or mechanical trading.
We do not believe that high number of trades will necessarily imply in high profit.



What kind of trading is this?

Swing type (1 day to 2 weeks range).
Less than one trade per day in average.
Low leverage employed.
Market orders mostly.
EURUSD pair (in rare occasions USDJPY or EURJPY).
Most of our trades are winners (check our C2 trade log).



What kind of return can be expected?


5 to 10% equity increase per month
in average on a consistent basis.
Check our C2 trade log to verify. This might not be much compared what competitors give but you wont have "surprises" with high drawdown that come along with those systems. For a risk averse trader, this is the right system.



Does that mean we wont have months with negative performance?

Drawdown is a fact of life. Without doubt we will and you must be prepared psychologically.
But we expect to be few.
Past records show 2 months a year with 15% drawdown in average.



Signals

Based on fundamental analysis;
Easy to follow;
In average one signal per day;
Entry at market prices in most of cases;
May (or not) have preset targets;
No preset stop loss;

Primarily aimed to Asia based traders (22:00 GMT to 15:00 GMT). Signals can come at any time but 95% will be during this time frame.

What if you are not in that time zone or cannot stay in touch with Collective2 (thru email or Instant Trade Messenger) all the time? No problem. Since signals are unrelated to each other, you do not need to worry about signals sent when away.

I do not, however, recommend skipping signals when you are in touch. Since signals are sent with purpose of generating profits, more signals you trade more chance you have to profit. As you can see by looking our past trade history, most of our signals are winners.



Fundamental Analysis

The core component of our system. News, sentiment, dynamics, volatility and experience define the signals. No mechanical decision. Only old fashioned human based analysis.

After years trying technical analysis we reached the conclusion you may have a number of months of exceptional performance but in the long term they are losers. The same can be said of mechanical systems (that may or not be based on technical analysis).



Money Management

Regardless of the leverage chosen at contract time with your broker, actual leverage should be 3:1.

That is, you should employ per trade 3 times (or less) your actual equity. For example, in
hypothetical account provided by Collective2, the initial capital is $100K for a mini lot account
($10K). $100K/$10K = 10 real mini-lots x 3 = 30 mini-lots to trade. When the equity reaches $133K, then we will trade 40 mini-lots and so on.

In real life environment, to trade mini accounts you should have a minimum of $3,333 (or other
currency) in your account. $3,333 x 3 = 10,000 = 1 mini lot; you trade just one mini lot. This
is high compared to what other signal providers suggest but it will protect yourself from
loosing your shirt. Take my word, this will allow you to sleep at night even at rough times.
If $3,333 is too much, try to open account at those brokers that allow trading in lots of $1,000. In this case, $333 will be enough. FX Solutions (www.fxsol.com) is one of them.

Added to the fact we have, in average, 1 to 6 trades open trades at any time, your total exposure will be max 18:1. It does not take a genius to figure out this is a low risk system. Even then you will able to profit 5 to 10% per month in average!



Stop Losses

The system does not set stop loss on per trade basis.
We start to cut loosing trades when total of open trades is -10% of total equity.
The size of the losers will be larger than winners, but since the number of winners is greater, we end up having profits.


In summary

- Based in old fashioned no-non sense approach to trading;
- And, again, we believe in being modest.