Zitat von Michael Norse (CEO Greenzone), July 28, 2014
So today was most likely the most boring day ever on Grenzone, absolutely nothing moving , all are waiting for the news to start coming out.
The EURUSD had a month of going down in a very sideways fashion, but going 3 big figures, was not that bad considering how stagnant that pair has been for long.. But today it took a real breather, basically being a total flatliner all day,. Since this morning we didn´t even see a 10 pip movement, so there was incredible little volume on the markets all in all.
The same basically goes for all pairs, so today is one of those days, where the most clever thing is to do nothing and wait, as we could expect some turbolence as the week progress.
Also since we now use the slingshot on 3 accounts, since the EURUSD is now in a new area and we build below the center of 1.3500 , we don´t want to ruin the set-up for just 2 or 3 pips.
Now as I have explained several of times then the hourglass system is based on mathematics rather than a normal channel or grid which has got a certain perimetre in which it is trading. This in the hourglass which makes it so special are the balance control and the primers, which are the hardest for most to understand.
As it is a long term system where we will build the main channel, based on a centre of the hourglass, we basically buy the range, investing the profits in doing so. This is why as you all can see when looking at the stats, that the profits stated here on this page every day, are the total gross profits made by the system. But since we are buying channes inside the hourglass, we invest the profits again, to be able to increase the volume on the positions as we go along. So we can keep making our hourglass, even with positions which we know will not be closed for months. So why can we do so , so it makes sense? Well pretty simple as we have an actual trading area and as we go along we trade at the current volume, which then increase according to the total balance of the system. Which means that the positions which are far away will get smaller and smaller as we go along and will not longer have any actual effect as they will be miniscule after a while and only when we go back into that area, then we increase those positions, with extra positions, and then use the current trading volume.
We really don´t want to be in positive equity at this stage of the system as we have 2 years or more to build the hourglass , depending on the market movements of course. But if you look at the stats page, you will see that most accounts now are in positive equity. This of course is due to the extreme sideways movements we have had since the start, building up cash so when going up to 1.3990 with for instance the EURUSD , it was quite obvious that it would drop again and we only made smaller positions on the way down, to keep a perfect balance , so when we reached the centre of 1.3500 we had equal amounts of buy and sell lots. Now we then build on the other side of 1.3500 , using what we call slingshots, which are designed for these situations , entering the second half ot the hourglass which is yet not really used apart from on GZ01 but since the market is considered bearish on this pair, we do take precautions against this of course, even though we can go basically anywhere the markets will go . .
A slingshot consist of 3 slightly oversized positions. They more or less all started around 1,3450 however the balance still slightly to the upside, so we have a difference of 1.5 lot between buys and sells. So when the pair goes down, we would face a Drawdown of 15 usd per pip, but since we have 880.000 USD on the account it means we could basically take the eurusd to 0.0000 which I assume won´t happen :-) . Now the 3 balance trades then are set for various destinations, one is left to run along and if you have followed the positions then you will see we don´t tp on it, as it is the main position. Should the rate then go below 1.34 we will continue taking profits with the 2 other balance trades and leave the main trade running. But we also have minor profit trades built into the system, which we will profit on and then wait for retracement, and then replace, meaning that the 1.5 lot difference then will mostly be covered by those positions. Upon reaching 1.34 we will set a SL of the main position but a few pips below the entry, which means that if the pair should turn upwards it will be closed in profit , just below the sl there will be opened a position of half the size of this balance trade, in case then the rate again should head south. When reaching 1.3300 we have the slingshot in full effect and the main position will then be closed and the 1.34 balance trade will take over as main positionand a new sell will be opened at 1.33 to keep the DD balanced. So basically should the rate go to 1.27-28 our DD would be less than 1% of our total balance.
Now it is these primers and balance trades which most people do not understand and what are the tricky part of the system, so this is why I tell you not to start your own hourglass until you understand the full extend of the system, which you can´t figure out from papers or in any other way than to follow the tutorial and when we start the live hourglass seminars.
Then when we have built our hourglass´s main channels, we will stagnate the increase of the positions and only increase slightly and while the rate moves up and down insdie this hourglass, we will keep building up volume and suddenly the gross profits will then become net profits. If then the rates will go beyond the hourglass channels we will simply pursue it and set in primers to keep the system balanced and also turn the equity if necessary.
So how do we boost the volume to go into positive equity in a controlled manner? . Well we do now as said re-invest the profits to build the system to become bigger. But however as you know then our Canadian investors were informed in February that due to new legislations in Canada regarding forex trading, then all the Canadian investors accounts would be closed in May. Luckily we have such a good communication network with our investors, that we informed all Canadians to wait with withdrawing their allocations and then we would force the system up into positive equity. So between February and April we basically didn´t increase the volume of the positions, which of course did take some of the targeted profit from us, but we could in April bring up the system in so much positive equity that we could inform our Canadian investors that now they could withdraw their funds, and they did with a nice profit to go with it. Should we not have had such a good communication with the investors, it would not really have been possible for us to communicate with them and they would have withdrawn at their own leisure, which could have cost them their profits.
I know that some now will think that by us doing so we lost some profits, which of course is true, but remember , we would do the same for you if you should get into the same situation. Not that we expect it to happen, but I just tell you for your own comfort.