100 Pip Targets Applied Tonight

Hi Everyone,

All 10 pairs received their first 10 trades each so I have applied now the 100 pip target.See below post for the read only password to follower the trades.Were sitting about + $405 right now.

David aka spiritfriends

A Forced New Cycle

Hi Everyone,





Some how a demo account which shouldn't go down did so now I will have to pick up where we left off and continue.We had a swap of $804 in 18 trading days(Sunday included) and a net profit of $2624.00 from 100 pip targets being reached for a total of $3438.00.We were well on our way to a $5000 month with the remaining days left in the month of June.Here is the screenshot of the statement before it closed.
If you have any questions please direct them to
spiritfriendss@gmail.com .

TWO THUMBS UP

Hi Everyone,

Were in positive float territory tonight.Additionally,profit from 100 pip targets is up to $1804.00.What really stands out is the swap collected since May 28th @ $582.00.

David aka spiritfriends

UPDATE FOR VERSION 2 OF SWAP COLLECTOR

Hi Everyone,

The Forex swap Collector has been doing well and I have an update for everyone.You can view another You Tube video with the update here: http://tinyurl.com/l3wask .If anyone has questions please send them to spiritfriendss@gmail.com .

David aka spiritfriends

Benifits of Setting a Target

Hi Everyone,

I wanted to post another good question from a trader and touch on a practice that can save you some losses.
Here is the post and question:

I am using it with 0.01 lots for the pairs AUDUSD and USDCHF . I have chosen AUDUSD because of higher swap and becuase it seems to me that USDCHF is an adequate hedge. But I notice , that a simultaneous movement usually gives more value for AUDUSD than for USDCHF , a situation which is even convenient now with a positive trend of AUDUSD. But in a negative trend it will lead to losses which surely will be larger than the collected swap ( and possibly the trend might continue over the maximal 40 trades , so that I experience no cycle and a cumulating loss ) .
My question:Would it be clever to use 0.02 lots for USDCHF when I see definitely a negative trend ( to have a more correct hedge and possibly even more profit ) ?

and my answer:

The proper lot size for eurusd and usdchf is eur .04 and chf .05.I would have to follow audusd and usdchf but to your question you would need to have a different lot size on both rather than just 1 lot size.To avoid a big drawdown,decide on an acceptable profit (I use 100 pips) you may use 25 pips then apply that as your target.That might cut your swap on some trades but you'll gain more from the target being reached and with each target being reached the Ea will continue to place trades(up to the amount you set) that become more relevant to time (present) thus minimizing your drawdowns.
A good pratice, and this should be part of your plan is to bank your profits often before you loose profits in a reverse and banking profits will minimize the drawdown in the event there is a reverse and substantial move. Hope this helps. David aka spiritfriends

Most traders,especially new traders feel that the bit hit brings them the big cash.With that also comes the big risks of holding your trade.You can't stay up 24/7 and watch your position so impliment a cash out by setting a target.That way,you bank some profit which is the point to all of this while letting smaller positions mature.In the event of a sideways market,your trades continue to pick up the swap.In a drawdown you minimize your stake because trades have been closed when targets have been reached and if your using version 1 it will be another 12 hours before a replacement trade is placed and 8 hours with version 2.Depending on your lot size,set your target realistically.Know the pairs your playing by using an ATR indicator giving you the day,week and monthly moves.

David aka spiritfriends

EUR/USD-USD/CHF Update version 2

Hi Everyone,

I've posted an update from my version 2 EUR/USD and USD/CHF trades.This might help those to see a visual of whats happening.I didn't use a target of 100 pips and trades are all at .02 or 20 cents.

David aka spiritfriends

Never Blindly Follow Someone's Methods

Morning Everyone,

There are some good emails coming in regarding the experiences of traders and how this has effected their trading now in being cautious.The main one is believing that someone else has the solution for your success.It's so important for you to be in control of your destiny and not having someone else make your decisions for you.The Swap Collector is just that.It can be used so many ways.You don't have to follow the way I use it or the pairs or methods I practice.Be your own master.If you purchase a copy of Swap Collector,start with 10 cents a lot and experiment.You won't get hurt at 10 cents.You also don't need to set trades at 40 trades or 60.Start small to see the workings of the EA and your selections.Use the back tester to show you quickly the results of your decisions.

Here is another email I received and the answer.

David,
A few years back, I was in a managed fund that targeted the swap on the GBPJPY which has good swap rates. The fund did really well while the pair was trending up but all the gains were given back (and more) when the GBPJPY fell off the mountain. This highlighted how dangerous it is to target swap returns alone. One still has to get the direction right to succeed. Does the use of three or four currencies offset the risks in this type of strategy? By your comments below, one has to do a bit of analysis to decide which currencies and the direction. I have not heard of the Murrey Math Lines before. You offer on the blog to include the four currencies that you use. Will this include tips on how to implement the EA and the use of the Murrey Math Lines.

My answer was

I have no problem before you purchase the Swap Collector to send you a couple of versions of the Murray Math Lines and the pdf's so you can experiment with them.I also teach some of my methods of trading to students all over the world.My average trader has 5 years experience or have come from stock trading to forex trading.
One of the first things I discuss with my classes is to have a plan.You should never blindly follow any system until it falls off the earth.Ask yourself what amount of money a month would you realistically believe you could make then divide that by 20 days which are the number of trading days in a month.If it's $5000 a month,you need to make $250.00 a day.That can be accomplished by collecting 250 pips at $1.00 a pip or 25 pips at $10.00 on 1 standard lot.I'm for always taking profits whether I make them in 2 days or 20 days.The hardest part of trading is the discipline to stick with your plan.I hear all the time "I could have gotten a lot more" and I reply "you also could have lost a lot more".
Try out the Murray Math Lines and I trade them from 1/8 line to 7/8 line for the reverse etc.They will often move past the 1/8 and 7/8 lines but that's basically the rule of thumb I follow.

David aka spiritfriends

I hope this helps those with questions about the Swap Collector and trading in general.

David aka spiritfriends

A Good Question

Hi Everyone,

Here is a question I received tonight that needs to be shared.

Hi David, Found the video on the Swap Collector very interesting. To make a positive swap on the EURUSD, you have to place buy positions. To do this while the pair is in a downtrend would be fairly costly. What would the results be if you ran the back test for the periods 01OCT08 to 31OCT08 or 01JAN09 to 31JAN09. Would you expect to leave the positions run until a positive result is made in following months. This may or may not occur?

and my answer

Good question.I would first like to say that there are many ways to play the Swap Collector.I like to use Murray Math Lines on the H4 and daily charts to get direction.I only mentioned eur/usd and usd/chf because they are opposites and most time what one has in losses the other has in gains...except when it comes to swap.There are 30 plus pairs to choose from with many combinations that would have paid positive swap during those dates you mentioned as EUR was dropping like a rock.Mind you,the sell on the eur/usd would have made up more for the loss of swap as the buy on usd/chf would have added to the bottom line.
I don't want anyone limited by what I use or say as there are many combinations.The swap collector isn't a method carved like other Ea's where 4-5 custom indicators all have to line up for a trade.Being time based it is the tool to take advantage of a number of pairs that are on the move while others are dormant. If you just always remember to take direction from a higher time frame and apply the direction to a pair that pays positive swap then the lot size can be configured to balance the available equity and free margin.The unfortunate truth about strategy tester is that the standard version doesn't compute daily swap payments so by hand it would take forever.I did however run both the eur/usd and usd/chf for the month of October 2008.Lot size was 10 cents and target 100 pips.The usd/chf closed for the month with +$139.34.The eur/usd -$1239.17 and I couldn't figure what the swap was.Interesting though in holding the trades for the next month of November,eur/usd for 2 months only changed to -$1314.63 but the usd/chf changed to +976.68 thus leaving a $300+ minus balance carrying into December.Again no swap figured in. If I can help or suggest other ways to benifit in using the swap collector,please email me with your questions.

The bottom line here is to remember that the Swap Collector can be used many ways to make profit.Please don't hesitate to email me with your questions.

Swap Collector Video Now on You Tube

Hi Everyone,

I now have the video on You Tube and you can watch it in better quality and size at
http://www.youtube.com/watch?v=LXHdv7mLEue .
I had a question that a trader thought the Ea lays a trade at certain price points.The Ea is totally time based and only lays trades every 12 hours on version 1 and every 8 hours on version 2.The only money management needed is to set your lot size according to your appetite for risk and your equity balance.You need the trades to continue daily to collect the swap.Only when you are satisfied with your bottom profit line would you close your trades and start the cycle over.
As I stated in the video,my 4 pair started May 28th had reached $617.00 by Sunday night June 1st.If that was enough for you then close the trades and start again...simple as that.
I can't stress enough that you must get the feel of the Ea if you are a beginner in trading forex before you start laying some heavy lot sizes.Ten cents a lot will give you that feel and still pay off your cost for both the Ea versions in a short time period.

David aka spiritfriends

More Screenshots and Reports

Hi Everyone,

I'm not sure if the video image could be enlarged so if anyone would take a minute to share that with me I would appreciate it.I will post this video on YouTube and Metacafe and maybe Yahoo.
Here are some things that will help you to see how this Swap Collector performs besides whats on the video.Be sure to check out the swap collected in 17 days with the 4 pairs I use.I will share that when a purchase is made.I know many of you have your own favourites to use but for those not familiar with trading this way,your purchase will include this selection that I use.
I do have a 100 pip target and you will see on 1 screenshot the targets being hit.I do not use a stop because I want the swap.Please forward any questions to spiritfriendss@gmail.com

David aka spiritfriends

The Forex Swap Collector Video

Hi Everyone,

I've made a video explaining what The Forex Swap Collector is all about.I hope you enjoy it.If you have questions please send to spiritfriendss@gmail.com .

David aka spiritfriends