Danielcode T.03 Model Account - Forex

This is a model account of the T.03 signals in forex generated by the Danielcode from 1st July 2008.

The T.03 signals in the model account are those created for our managed funds. About half the pairs for which we create signals are covered on this website. The others are not.

This account is not a true trading account. It is a representation of the T.03 signals based on the following assumptions.

Trades are entered at the daily high or low of the previous day as indicated by the T.03 signal. An appropriate buffer is made to the recorded daily high/low. All signals and calculations are made from data supplied by Genesis Financial Technologies. As there is no central exchange for forex, different data sources will have different daily highs/lows. This may impact whether a T.03 order is filled or not filled. Experienced traders will on occasions find a legitimate earlier entry from shorter term charts.

The model account assumes a tick value of $10 for ease of calculation. In forex, actual tick value varies greatly from about $5.50 per tick to $14.00 per tick dependent on the cross and its price.

The model assumes that it is filled at the required theoretical entry price which may or may not be available on varying platforms and makes no allowance for brokerage or slippage. Forex pricing and availability of fills varies significantly across varying forex platforms.

The model assumes that the stop loss on entry goes at the point where an outside bar would occur plus or minus a buffer as referred to above.

The model assumes a standard $100,000 forex lot. The free margin required to trade one standard lot varies from about $1000 to about $2500 depending on the currency traded and the currency in which your account is held. For the purposes of calculating month to date and year to date returns, the model assumes an initial account balance of $50,000 so the initial risk on entry will range from 1% to 4%. It is not considered prudent to trade more than 2% of your account unless you are a very experienced trader with good stop loss technique.

The model uses dynamic stops to progressively minimize risk after an entry is elected and exits on the first profitable opening.

It is the nature of forex markets that a number of crosses on the same currency will set up at once. So a big move in AUD might set up T.03 signals in AUD-CAD, EUR-AUD and AUD-CHF. These pairs all have the same element AUD so there is a high degree of correlation in the trades. If one is a winner they will likely all be winners. If one is a loser they will likely all be losers. To protect against making an improper allocation of capital we use "correlation tables" that reduce each trade by the appropriate amount. Correlation tables are available on the internet and your broker should have them. The model account simply takes all possible entries on the day and assumes that they all may be filled and divides the investment accordingly. So if there are three possible entries in highly correlated crosses, the model will only invest 1/3 of a standard contract in each entry. If two possible entries then it invests 1/2 and so on.

The purpose of the Model Account is to demonstrate one method of creating trades from the Danielcode data. There are many others. Past performance is not indicative of future performance. The recording of a standard trading concept derived from the Daniel number sequence is intended only to highlight one aspect of a methodical output from this data. T.03 signals are for your education only and are not intended as recommendations or invitations to trade in securities. Do your own research. Consult a licensed broker in the appropriate jurisdiction before considering any investment in securities of any type.

Disclaimer: All the reports, charts and content in the Danielcode web site are for educational purposes only and do not constitute trading advice nor an invitation to buy or sell securities. The views are the personal views of the author only and should be treated as such. Before acting on any of the ideas expressed, the reader should seek professional advice from a licensed broker in the appropriate jurisdiction.

Risk Disclosure for Front Page, Long Term Trend Charts: THE RISK OF LOSS TRADING COMMODITIES OR FUTURES CAN BE SUBSTANTIAL. COMMODITY TRADING HAS LARGE POTENTIAL RISKS, IN ADDITION TO ANY POTENTIAL REWARDS. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES OR COMMODITIES MARKETS. DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. THIS IS NEITHER A SOLICITATION NOR AN OFFER TO BUY OR SELL COMMODITY INTERESTS. THE USE OR PLACEMENT OF ANY STOP-LOSS OR STOP-LIMIT ORDERS MAY NOT LIMIT YOUR LOSSES AND YOU COULD LOSE MORE THAN YOUR INTENDED AMOUNT OF MONEY AT RISK. PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT INDICATIVE OF FUTURE RESULTS.

Risk Disclosure for Genie Results, T.03, T.03+ and TradeProgram: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.