Introduction to RYZE.Ai:
I sometimes have people tell me that they really like to read my trading adventures and they would like to make money trading currencies but they don’t have the time to learn the skills necessary to be successful. For those people, there is a great program called RYZE.Ai by Hodo Global. I can show you this fully automatic artificial intelligence algorithm, which I really like and generates consistent profits, week after week. For more information, please watch the overview videos, read more of my detailed articles, attend a Thursday evening webinar or send me an email and set up a time to talk personally.
Now back to my personal trading:
New Master Trader – Steady Freddy
Update: This was a system I researched in the past. I do not recommend it for reasons spelled out later. More great news on the automated trading front! A company I am evaluating has an automated mirror trading site that has added another Master Trader. The new Master Trader is called Steady Freddy. It trades the Euro / Japanese Yen currency pair (EURJPY). My intent is to keep this article current and to update this post as time progresses and I acquire more experience with this new Master Trader. The company plans to eventually have a group of ten to twelve Master Traders in the automated trade mirroring for members to choose from. This group of Master Traders will give members the options to choose among various trading styles, different currency pairs, and varying levels of risk to match their own trading and income goals. In addition, members will be able to trade multiple Master Traders if they want to do so.
I was a little concerned about this second Master Trader because of the correlation of the British pound / Australian Dollar (GBPAUD) currency pair with the other Master trader I use, the Simply Sterling, which trades the Euro / Japanese Yen (EURJPY) currency pair. The daily correlation of the currency pairs is very high, which is not ideal. Ideally, you would have two pairs with low or negative correlation. In this case, their trading styles seem to be such that they often aren’t trading at the same time, so I felt that having these two pairs was acceptable even with the higher than desirable correlation. When I add the next Master Trader to my mix, I will probably look for a lower correlation with these two as a criteria to evaluate. The correlation is as follows:
Hourly Correlation: -25.1%
Daily Correlation: 68.9%
Weekly Correlation: 42.3%
Monthly Correlation: 67.7%
What am I talking about when I discuss the correlation between two currency pairs? Let me begin with a basic explanation. The correlation between two things is measured on a scale from 1.0 to -1.0. In this scale 1.0 means they are perfectly correlated. As it relates to currency pairs, a value of 1.0 would mean the prices of the two currency pairs move in the same direction one hundred percent (100%) of the time. This means, whenever currency pair 1 moves lower, currency pair 2 moves lower as well. In the opposite extreme, a correlation of -1.0 would mean they are perfectly negatively correlated. This would mean that one hundred percent (100%) of the time the move in opposite directions. That means, whenever currency pair 1 falls in price, currency pair 2 would always fall in price as well. Traders can use negatively correlated assets in their portfolio as part of their risk management strategy and decrease the volatility of their overall portfolios by doing so. In the future I will post more about risk management, but correlation and its relationship to risk in a portfolio is an excellent concept to understand at a basic level..
By looking at the chart above, you will see that the EURJPY and GBPAUD have a negative correlation on the hourly chart but a high correlation on a daily chart. This means that on an hourly basis they do not move together but usually over a day, they are moving in the same direction. Like I said earlier, ideally when I add a third Master Trader, I will choose one that trades a lower correlation pair to these two currency pairs.
Another reason I like the Steady Freddy Master Trader is that it has excellent trade metrics, as shown below:
|Winning Trade Percentage||100.00%|
|Average Win||1.48% / $19.42|
|Average Loss||-0.00% / $0.00|
|Best Trade||(Mar 1, 2016) 2.88% / $37.10|
|Worst Trade||(Oct 6, 2015) 0.32% / $3.36|
I like that the average win is greater than the average loss and that the winning trade percentage is over 80%. I think this will be a great addition to my portfolio and could also be a good choice for people who want to earn while they learn.
|Compound Daily Growth||0.15%|
|Compound Monthly Growth||4.66%|
|All Time Equity High||$1314.33|
The monthly growth is also very good. I will update these charts in future weekly trading reports. (The weekly trading reports are the place that I track the performance of the Master Traders and the results of the Live Trading Rooms.)
This is the trading history for the past 16 trades for the Steady Freddy Master Trader. This Master Trader is relatively new and trades about once a week. There are very specific entry signals they are looking for. So, if you like lots of action this Master Trader is not for you. If you like slow steady results, this is your choice. Note, this was at first analysis. This company subsequently experienced large drawdowns due to trying to increase the frequency of their trades. I do not recommend them.
|Open Time||Close Time||Open Price||Close Price||Lots||Type||Pair||Profit||Pips||Gain|
|2016-03-04 13:17:59||2016-03-04 17:15:02||124.992||125.228||0.12||buy||EURJPY||24.96||23.6||1.94%|
|2016-02-29 17:57:40||2016-03-01 00:30:47||122.464||122.117||0.12||sell||EURJPY||37.10||34.7||2.96%|
|2016-02-18 22:36:06||2016-02-19 02:50:27||125.733||125.608||0.11||sell||EURJPY||12.17||12.5||0.98%|
|2016-02-08 13:06:00||2016-02-08 13:13:00||130.081||129.867||0.11||sell||EURJPY||20.18||21.4||1.66%|
|2016-01-25 17:01:00||2016-01-27 14:48:00||128.54||128.754||0.11||buy||EURJPY||19.89||21.4||1.66%|
|2016-01-20 17:56:00||2016-01-21 15:50:00||126.818||126.58||0.11||sell||EURJPY||22.34||23.8||1.90%|
|2015-12-29 15:47:00||2015-12-31 12:24:00||131.537||131.296||0.11||sell||EURJPY||22.01||24.1||1.91%|
|2015-12-18 06:23:00||2015-12-18 07:56:00||132.477||132.238||0.1||sell||EURJPY||19.61||23.9||1.73%|
|2015-12-03 15:34:00||2015-12-03 15:34:00||132.272||132.504||0.1||buy||EURJPY||18.85||23.2||1.69%|
|2015-11-20 23:59:00||2015-11-23 18:33:00||130.628||130.448||0.1||sell||EURJPY||14.63||18.0||1.33%|
|2015-11-06 15:30:00||2015-11-16 01:03:00||131.63||131.294||0.1||sell||EURJPY||27.45||33.6||2.56%|
|2015-10-22 15:29:00||2015-10-22 15:30:00||134.764||134.539||0.09||sell||EURJPY||16.91||22.5||1.60%|
|2015-10-09 10:02:00||2015-10-09 10:31:00||135.722||135.921||0.09||buy||EURJPY||14.91||19.9||1.43%|
|2015-10-05 15:15:00||2015-10-06 16:56:00||135.095||135.14||0.09||buy||EURJPY||3.36||4.5||0.32%|
The Harmonic Scanner is just gave a signal on the Japanese Yen. Although this isn’t part of the Steady Freddy Master Trader and is my own chart, I wanted to include it since we were talking about the Yen in the Steady Freddy.
Bank of Japan
Compared to the Bank of England profiles in a previous article, the Bank of Japan is a relative newcomer. Per the Bank of Japan website, “The Bank of Japan was established under the Bank of Japan Act (promulgated in June 1882) and began operating on October 10, 1882, as the nation’s central bank. The Bank was reorganized on May 1, 1942 in conformity with the Bank of Japan Act (hereafter the Act of 1942), promulgated in February 1942.
The Act of 1942 was revised completely in June 1997 under the two principles of “independence” and “transparency.” The revised act (the Act) came into effect on April 1, 1998.”
In light of it’s significance and in keeping with my tradition of adding some geography into my posts, here is the Bank of Japan map:
Map of Bank of Japan
As I always say, if anyone has questions about trading or about RYZE.Ai or Hodo Global, please leave them in the comments section below or email me at xin@goRYZE.com.