Forex Freedom Rocks scam ? Lets discuss this program.

[FrankTheTank]

Hi Jim.

I saw this post on another forum and thought that it made sense to me. I was thinking about this point for the past two days because it appears FR works best when currencies are in a trend against the USD.

The only reason everyone is making money in Freedom Rocks is because the EUR/CHF pair has been in a strong uptrend almost since they started...... when that changes, you will get crushed.

If you buy EURUSD you are long EURO and short USD
If you also buy USD/CHF - you are long USD and short CHF

The two USD's cancel each other out..... and the net effect is that you are pretty much long the EUR/CHF pair.

When that goes up - you make money! When it goes down, you will see a lot of people hurt.

From the EURCHF chart - it is about to go down.

March-April people would have lost good money on this method.

1996 through 2001 - this strategy doesn't work at all with these pairs.

Would love to hear your thoughts. Thanks!

Originally Posted by FrankTheTank

Hi Jim.

I saw this post on another forum and thought that it made sense to me. I was thinking about this point for the past two days because it appears FR works best when currencies are in a trend against the USD.

Would love to hear your thoughts. Thanks!

That is true but only partially. FreedomRocks does take that into consideration. The hedge is balanced to (hopefully) negate the worst effects of a negative move in the EUR/CHF. What the above comment doesn't point out are the reasons the EUR/CHF was in a strong down trend during the years mentioned. The fundamentals are radically different now. Switzerland has sold off a large part of its gold, the economy is not dynamic and rates are low. The Eurozone has a good trade balance, stong economies, the currency is becoming a major reserve currency and rates are relatively high. The odds of a sudden, sustained, trend reversal at this point are not very strong.

As long as the correlations hold and the currencies fluctuate, the program is viable in my opinion. FreedonRocks is very much an excercise in statistics, fundamentals and a nice bit of luck. It isn't for everyone but it works for me.

Just a note, every week Mark Vincillette, the programmer, hosts a live conference call where the subject is strictly Forex and the FR software. Everyone with at least a Free-Trial is welcome to attend. The software's author is the best source of answers.

There were some overnight developments that I thought I'd report on. The Bank of England (BOE) unexpectedly raised its rates by .25%. This had a very positive effect on my portfolio so I rebalanced my account and took some profits off the table. I was up about 41% since the last time I balanced my portfolio (about 5 weeks ago) and I took about 29% home. I let the rest ride. I know it isn't a nice round number in percentages but it was in dollars

Since I started last June I have had 1 down month and the rest have been awesome. I was never close to a margin call (knock on wood). I always tell folks not to expect the incredible gains we have had over the last year even though they keep on coming. One of these months the markets will calm down and we'll have to live on just the interest and trading profits. I'll manage somehow...

I am an independent representative and not an employee or agent of FreedomRocks. All opinions and trading results are solely my own.

[FrankTheTank]

Wow. Jim. Congrats!

I choose to go to bed instead of paying attention to the rate decision (I thought it would stay unchanged) so I missed out on the 100 pip move

I had another question for you. You mentioned that EUR and CHF should still remain strong against the dollar in 2007. However, technical setups on my charts would suggest otherwise. I know technical trading using laggy indicators is pretty much useless, but, it still scares me. I think I might wait a few months into 2007 to see how the USD does and then make a better decision about FR.

[FrankTheTank]

One last point, if anyone is thinking about joining Freedom Rocks, Jim is a great resource and always answers all my questions on the forum or by email (very fast). I would suggest you join under him by clicking on the link in his signature. I can not think of a better sponsor to have.

The beauty of FR is I was sound asleep and found out about the money I made after I woke up. Ya gotta love it!

To clarify, I was speaking of the releationship of the EUR to the CHF, not that they would remain strong. I don't care what they do as far a strength. If both currencies collapse agains the dollar, it's fine with me. I only care that the EUR has better fundamentals than the CHF at this point and is unlikely to fall substantially against it.

I hope that clarifies things a bit.

Originally Posted by FrankTheTank

One last point, if anyone is thinking about joining Freedom Rocks, Jim is a great resource and always answers all my questions on the forum or by email (very fast). I would suggest you join under him by clicking on the link in his signature. I can not think of a better sponsor to have.

I'm blushing! Thanks.

[HornedGod]

Originally Posted by FrankTheTank

One last point,  if anyone is thinking about joining Freedom Rocks, Jim is a great resource and always answers all my questions on the forum or by email (very fast).  I would suggest you join under him by clicking on the link in his signature.  I can not think of a better sponsor to have.

I'd second that.  I demoed the FreedomRocks program under Jim and he answered all the questions I had about it.

Given that I'm now a bona fide member of FreedomRocks feel free to take all my comments with the grain of salt that is required.

I have written up an article on the correlation aspect and EUR-CHF bias that is being discussed.  It's rather a long article as I cover a lot of basics for those who are not familiar with the issues, so I won't repost it verbatum here.

While I cover some of the points that Jim has made I also discuss why correlated pairs are used rather than trading EUR-CHF directly, and how you should be vigilant to the trend and underlying fundamentals that affect the EU and Switzerland.

I know that FreedomRocks like to paint their trading system as a 'no charts, no trading experience required' type of deal, but the more you know the better prepared you will be to make the most of it.  For example, if your reading of the fundamentals sees a continuing of the trend with EUR getting stronger against CHF it would signal that you can be more aggressive in your position sizing.  If you foresee the trend reversing or even stalling then that might indicate that a more conservative approach is needed.

[FrankTheTank]

Thanks for your post. I will read your article.

Hopefully this will turn into a good discussion on FR and not a freeforall like the posts at TalkGold

I just finished the article and it is killer! Great job. I wish I had written it myself.