Introducing Watukushay No.5 Beta : A Universal Daily Breakout System

If you have been following my blog for a while you might be aware of the Watukushay project, an initiative which gathers my efforts around the well-documented development of likely long term profitable systems. The last EA of this series was Teyacanani and today I am happy to introduce the next member of this family of what I think are well-crafted, sound trading systems with reliable simulations and very good possibilities of achieving long term profitability in forex trading. On today's post I am going to talk to you about Watukushay No.5, its first achievements and what makes the release of this EA different from the others as its development from now on will be done in conjunction with the Asirikuy community :o). I will first share with you the main aspects of the expert's trading character as well as the first results on the EUR/USD and the great potential I think this EA holds.

To tell you the truth, it was not easy to come up with a release candidate for Watukushay No.5. I have been developing and evaluating systems none stop and - as a matter of fact - this has led to the finding of some very interesting trading techniques which have shown likely long term profitable results in 10 year backtests with acceptable trading characteristics. I have shared with you some of these developments such as the Bollinger Band strategy I wrote a blog post about a few weeks ago.

However I didn't feel any of these tactics were suitable for Watukushay No.5 since none of them had the multiple instrument potential I wanted for the next Asirikuy trading system. With the achievements of Teyacanani in mind, I decided that I wanted to create a system that could achieve good trading characteristics on several currency pairs and which had enough flexibility to exploit various types of inefficiencies with a simple change of settings. After a lot of searching and a lot of evaluation (and a fortunate email from an Asirikuy member who reminded me of some previous work) I have found a trading method that will be the core of Watukushay No.5.

This new Asirikuy EA is a daily breakout system that looks for trading opportunities everyday based on certain price ranges or "boxes" that may develop. The expert advisor looks at a specific period of time and sets pending orders if the characteristics of the ranging periods are adequate. As Kutichiy (Watukushay No.3), this EA uses an entirely adaptive technique which fits all the characteristics of the EA as multiples of the assigned range. It is interesting to see how many inefficiencies can be found through the trading of breakouts of consolidation periods and how these consolidation periods turn out many times to be non-conventional. The image below shows you a sample of a favorable trade of Watukushay No.5.
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I have worked a lot on this EA and I have already found several long term exploitable inefficiencies based on such breakouts. Trading on the EUR/USD, this EA is able to achieve results as good as those of Watukushay No.2, however the great thing about this EA is not its mere ability to profit from this currency pair but its more "universal" character. With the flexibility to change the breakout character, the characteristics of the box, the take profit, buffer and the actual trading or "fading" of the breakouts Watukushay No.5 is fit to trade a broad range of possible inefficiencies on several different instruments. Since this breakout system is very different and much more flexible than Kutichiy its potential for portfolio trading is MUCH higher.

Perhaps the largest difference between the release of Watukushay No.5 and the rest of the Watukushay expert advisors is that I released this EA at a somewhat early stage of development. My objective with this is to encourage the participation of the Asirikuy community so that new inefficiencies on other currency pairs can be found and a large scale analysis and coarse optimization of the trading system on many currency pairs can be done. Watukushay No.5 is not yet ready for live trading but it is still within what I would like to call an "Asirikuy community Beta" in which I hope members on the website can team to analyze the EA and use it to find trading tactics to trade a wide variety of currency pairs. (below a EUR/USD backtest from Jan 2000 to Jan 2010)
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The great thing about the EA is that it can be fit to test extremely different tactics on many different currency pairs, it can be used to trade Asian session breakouts on the GBP/USD or it can be used to fade breakouts of the European session on the EUR/CHF, etc. The trading system has incredible flexibility and it has the possibility to take profit from a large variety of market situations that may show to constitute long term inefficiencies. Of course, I also expect we can add some additional closing mechanisms if our analysis within the next few months demonstrates that such additions would prove to be improvements to the expert's logic.

Right now I have great expectations for this EA which has already shown its potential to achieve good profit and draw down targets on a few currency pairs. Will we be able to join as a community and evaluate and examine this trading system ? Will new and exciting ways of trading daily breakouts arise from the forum ? Right now the results of this trading system already point to its future outcome as a strong Asirikuy system and certainly I believe that the Asirikuy community forum approach will only make it better.

As for the name... We will be making a poll in the forum and we will name it when the first live account comes out :o)

If you would like to learn more about the Watukushay project and how it seeks to develop trading systems with sound trading techniques and realistic profit and risk targets please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Introducing Our New and Exclusive Profit and Draw Down Asirikuy Analysis Tool :o)

If you have read my posts during the past few months you will notice that I have become increasingly interested in the analysis of trading portfolios and the effect of trading several different systems together. After I was able to implement a solution that made the balance of Asirikuy experts independent it became possible to trade systems without their balance calculation becoming dependant on the other systems' trades, something which in turn opened the door towards the merging of backtesting results to accurately evaluate joint performance of the different trading systems. Up until now all this analysis had been made through the use of SQL scripts and VBA macros which were implemented by several Asirikuy members. Thanks to their effort we were able to do accurate calculations on the draw down and profit characteristics of portfolios. However it became evident that these solutions to portfolio analysis were not very comfortable needing backtesting statement manual reorganization in excel followed by loading into an SQL server and then loading onto a separate excel spreadsheet to run VBA macros. For this reason we decided to start a project with an Asirikuy member (named Gábor) who offered some of his free time to do all the coding of this new draw down/profit analysis program. On today's post I have the pleasure to introduce this little Asirikuy-exclusive utility, our own profit and draw down analysis tool :o).

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What is so great about this program, what does it do ? The program has many virtues that make it exceedingly good for backtesting statement analysis. The application allows us to load one or a series of backtesting statements joining them together automatically and calculating a series of very important characteristics which are not calculated on the metatrader backtester (not even the MT5 backtester). The program automatically calculates draw down periods, their length, their depth, yearly profits and monthly profits. Having all this information "a click away" is extremely important since it will allow us to do very fast Asirikuy portfolio analysis without having to through the cumbersome process needed to use SQL scripts for this purpose.
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The image above shows you one of the main characteristics of this software, displaying the equity curve for the loaded backtests (in this case three) plus the addition of their results to show you the "portfolio equity curve". This instant snapshot of the equity curve is important since it allows you to see which systems were losers and which ones winners through the testing period you are evaluating. This in turn allows you to gauge the contributions to the maximum draw down and the overall risk level of the different systems, letting you know which system causes the most loses or profits.
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The above picture shows you perhaps the most useful feature of the software, the ability to display draw down period lengths and depth of a given portfolio with great easyness. This allows you to know the average extent of draw down periods and how long you would have to be prepared to wait if you want to use a given trading strategy. It gives an overall realistic picture of a system's trading characteristics showing you why it is evidently hard to trade and what you should be looking forward to regarding eventual loses and losing periods. This draw down period analysis has become a very important part of system analysis within Asirikuy, letting us evaluate accurately worst-case scenarios and largest draw down period lengths.

Besides the features I have commented here, the software also has the ability to display monthly and yearly profits, important characteristics that are useful for determining the overall trading character of a given system. How profitable is the average month ? How many months are winners vs how many are losers ? What is the average yearly profit ? All these questions are answered by our new Asirikuy tool and its ability to dissect trading results into yearly and monthly statistics.

As time evolves we will be able to implement new features and correct bugs that may appear but currenlty this new profit and draw down analysis tool is a very nifty and welcome addition to Asirikuy. From later today, Asirikuy members will be able to download this piece of software from the Expert's section of the website. If you would like to learn more about my journey in automated trading and how you too can start to design your own long term profitable systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Trade Asirikuy Systems Risk Free -> The New Challenge Account Restoration Fund

Today you will be witnessing one of the most important decisions I have taken within Asirikuy history. Several months ago I decided to create a fund called the micro-account stimulation project (MASP) which had as an objective the donation of 100 USD to a random Asirikuy member every month so that the selected member could create a challenge account and trade an Asirikuy system of my choice within it. The selected member would be given the 100 USD with the mere condition of running the EA on a VPS for two years and allowing me to monitor the account within Asirikuy. I was full of hope with this project and I hoped it will encourage people to open up mini accounts to try out Asirikuy systems and truly commit to their trading. However I was wrong about this. Today I will talk to you about the fate of this MASP fund and what will now be done with the money I have been putting aside for this project.

So what happened with the MASP ? People simply were not interested in my offer. During the past 5 months I have been contacting random Asirikuy members every month to tell them that they "won the prize" and would be given a free 100 USD from me to start their own micro account to trade an Asirikuy system. However the few who answered never really created the account or emailed me the details and the truth is that most members didn't even bother to contact me back. I also informed them they had won on the newsletters, the forum, etc and almost all the time I simply did not receive any reply.

I think that the reasons for this may have been several. Perhaps people are reluctant to receive money from a stranger (could be ?), perhaps they didn't want to open an account with any broker offering mini cent accounts, they didn't have a VPS or perhaps the price of the funding for the broker they wanted was too high. For whatever reason, the truth is that my very well intended Micro Account Stimuation Project failed and I now have 500 USD saved which clearly had a purpose they no longer have.

The solution ? I will now be changing the MASP to a project called the Challenge Account Restoration Fund. From now on I will be adding 100 USD to this fund every month (plus the 500 USD currently there) and the collected money will be used to restore the account of a challenger who reaches worst-case scenario levels within his or her account. Every system and every portfolio has a worst-case projected level and if this level is reached, I will send the owner of the account money from the Challenge Account Restoration Fund to replace their lost capital. Of course, the funds capacity is limited and it will cover older accounts and accounts with less initial trading capital with a higher priority. Up until now no account in Asirikuy has reached a worst case scenario but all current challengers can now be assured that if they reach such a case, there will be some insurance waiting for them :o).

The idea of this project is to provide challengers with some degree of compensation for the risk they are taking and to spend this money I was already looking forward to donate to Asirikuy members in a more efficient manner. This effectively means that people can now participate with cent accounts in Asirikuy in a Risk-free manner since the fund will obviously be able to cover the 30-60% worst-case scenario for small 100-200 USD accounts. As you see, I do this because I truly believe in my systems and I believe that a worst-case scenario for them is unlikely - although possible - and I want people to have some benefit when they take a risk with any new Asirikuy EA.

So now I can say that I am doing something no person involved in trading has ever done - to the best of my knowledge- I will be returning money lost by traders who use my systems if they reach certain draw down levels (provided they are Asirikuy challengers). I hope this encourages many traders to join Asirikuy and possibly some Asirikuy members to join with challenge account in this quest towards long term profitability :o).

If you would like to learn more about my journey in automated trading and how you too can trade automated trading systems with a high like hood of long term success please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

The Atinalla Project - A Well Laid Out Plan For Long Term Capitalization in Forex Trading

With the development of seven different systems within Asirikuy, the testing of these system on live accounts and the development of adequate tools for draw down analysis. I have realized that it is time for us to start a well laid out plan in Asirikuy for long term capitalization. Up until now, since the performance of joint portfolios was not known there was no clear information of what a "good portfolio" would be and what money adding tactics would work best to ensure that our portfolios would have the best performance over long periods of time. However, after modifying the experts to work with an internal balance solution and analyzing their joint simulations, it is safe to say that we now have a very good idea of what seems to be possible using Asirikuy automated trading systems.

Today I am very proud to announce another milestone in the development of Asirikuy, the start of the Atinalla project. This word which - you guessed right - comes from the Quechua language of ancient Bolivian, Colombian and Peruvian natives simply means "possible". I want to be absolutely clear in that what I am about to release does sound too good to be true and in order to be absolutely honest I will tell you that I cannot guarantee that we will obtain the results given below. What I can guarantee is that we will have clear profit, draw down and worst-case scenario targets and even though this may be experimental, it may prove a reality over time if the analysis is correct.

The objective of the Atinalla project is simple. I want to get a dedicated trader from an initial investment of 1000 USD to a five figure yearly income in 10 to 15 years by using purely mechanical trading systems. To do this I have paired up different Asirikuy systems - which up until now have back/live testing consistency - and I have designed a strict yearly money addition protocol of 1200 USD and a way of trading the systems that ensures maximum profitability.

I have also realized that with my particular choice of systems, the actual continuous compounding effect is detrimental to yearly profits as favoring the previously most profitable systems appears not to be the best tactic. I suspect that this is probably due to the fact that expert advisors have years of high profitability followed by much less profitable periods and having all experts always start the year with the same capital offers a much better effect in the long term. By resetting the initial balance of the systems each year to make them all trade the same initial capital (plus any yearly additions) will make the systems achieve much higher profit targets in combination. This is evident when you look at the yearly profit and draw down targets shown below.
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Since this includes separate backtests for each system for each year, it can be safe to say that the "starting point" of the portfolio is not extremely relevant to draw down targets. The maximum draw down achieved by the above portfolio during the 10 year period is roughly 18% and the profit target of the portfolio is in average 65% after ten years. The standard deviation of the profit percentage is huge (32%) showing that if yearly profitability in the long term follows a normal distribution (of course, this is an assumption but the current data suggests it) we may go from 161% to -31% years in the very long term. However the standard deviation for draw downs is much lower and this analysis suggests that yearly draw downs may go from 1% to 25% in the long term. The year 2010 - which has not ended yet - was not taken into account for the average profit and draw down analysis. The maximum days of draw down have an average of 99 but the standard deviation - which is quite large - suggests that we may have a maximum yearly draw down period near 230 days in the future.
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A graph of the above mentioned yearly profit and draw down figures shows what appears to be a great trading portfolio achieving profit over all years during the past 10 years and having extremely moderate draw downs consequence of the hedging character of the different strategies. Of course, there are some years in which the temporary draw down comes near the experts' yearly profit but in the end all years end up with higher profits when compared with draw downs.
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One of the most interesting things I thought I would do was to calculate the 2010 results for this portfolio using current Asirikuy live trading data. Using the systems included in the portfolio (with some live accounts having fortunately the same risk level, making them adequate for comparison) and adding their results together I could get a profit of 35%. However, one of the experts used on the portfolio has only been trading since April so this profit figure - which neglects a very important January and February profit shown in backtesting - is below what should have been achieved for this year. This shows not only that the live portfolio is in line with the backtests for the year (backtests do not include May, reason why live testing shows about 10% more profit) but that the experts do have synergy when traded together.

What we have with Atinalla is a clear target and a clear way to achieve it based on sound evidence. The systems will be traded in a portfolio, resetting the initial balance each year (to the final yearly capital plus addition for all systems) and doing a 1200 USD addition starting with a 1000 USD initial investment. We will expect a maximum draw down of 18% and our worst case scenario will be a 36% draw down level. We have a projected average profit level of 65% after ten years but we will expect anything from -31% to 161%. The important thing here is NOT to look at the profit values but at the draw down targets, we have absolutely clear, well designed worst-case scenario levels which will trigger our "stop trading" signal if they are reached. So if anyone trading this portfolio reaches a 36% draw down, no more trading will be done since the systems have become to risky to continue trading.

Of course, Asirikuy members will find a page this Sunday including all Atinalla testing information as well as the settings required to run each expert advisor and a video explaining how I did all the tests, how to load the experts on your account, etc. Doing this analysis to come up with the first Atinalla portfolio took a long time but many other portfolios will certainly come as time evolves and new good combinations become apparent. We will also open up the Atinalla challenge for people willing to start trading the above portfolio with a commitment to stick with it from 2 to 10 years on a VPS.

Will Atinalla provide people with financial freedom ? Will it be able to achieve a five figure income for someone after 10-15 years ? Will we reach the worst-case scenario ? Will people endure the harsh draw down periods and low profitability years ? All these questions will be answered within the next ten years within Asirikuy :o) If you would like to learn more about my trading systems and how you too can build expert advisors based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Asirikuy Portfolios : Increasing Profits Without Increasing Draw Downs

One of the objectives of Asirikuy is the development of portfolios to trade with high profitability and diminished risk levels. For the past year, the systems tested within Asirikuy and the previously available newsletter had never been traded together due to the fact that the effect of trading them within a single account had not been measured. For this reason it was very difficult to know if trading the experts together would have a positive effect in the overall risk level and the building of portfolios had been postponed until we had enough live trading evidence about Asirikuy systems. During the past few months - and thanks to the contributions of several Asirikuy members who provided several analysis tools - I have analyzed different combinations of Asirikuy trading systems and the way in which they affect each other's trading during the long term. I would have to say that the results have been excellent to say the least. Within this post I want to share with you my analysis about an Asirikuy portfolio and how the combination of the different systems allows us to reach a great increase in profit with only slight increases in risk.

To begin my journey in portfolio building with Asirikuy systems I first tried simple combinations of all the systems to see what overall improvements I could achieve within their performance. I will show you today the effect of building a 3 system portfolio from Watukushay No.2, Teyacanani and Watukushay FE which are perhaps some of the most popular systems within Asirikuy. These systems all have a high like hood of long term profitability with 10 year profitable results and a good possibility of being live/back testing consistent. In fact, both Watukushay No.2 and FE have been trading for almost 6 months with consistent results with simulations. Since Teyacanani only has about one month of live trading, consistency cannot be evaluated yet but preliminary results look good.

What was the effect of combining these systems ? I have to say that I was impressed by the synergy I got when I joined these trading systems within a portfolio. By using their 10 year - Risk 1 - backtesting results and combining them using the tools developed by two Asirikuy members I was able to easily analyze the results from these three different systems combined. This is inline with what you would get by running the three within a single account since their internal balance mechanism ensures that they only take into account their own profits and loses when calculating their balance. Below you can see the equity curve for this 10 year combined analysis of their results in simulations.
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After ten years of trading the systems achieve - by working together - an equity gain of about 309% which is equivalent to a yearly compounded profit level of around 19% (see year by year analysis later on). Perhaps the most impressive aspect is not this but the fact that the maximum draw down level of this portfolio combination was very low, at only 5.15%. Not only is the draw down small but it is actually smaller than the draw down level of almost all the systems used. Watukushay No.2 has a maximum draw down of 5.2%, Teyacanani above 6% and Watukushay FE just above 3% showing that the systems are indeed able to reduce draw down to a lower level. Profitability was greatly increased - since the effect of profitability is additive- while draw downs were globally diminished. The overall consequence is the achievement of a yearly profit to maximum draw down ratio of 19:5.15 or 3.68, a wonderful number for any trading system.

An interesting effect also comes when you consider the length of the maximum draw down periods. The maximum draw down length is also greatly reduced when compared with individual systems. For example, Watukushay No.2 has a maximum draw down length of 259 days, while the combined portfolio has a value of 216 days, showing a diminishment in the duration of the maximum draw down length. This means that not only does this portfolio achieve lower worst-case equity loses but the overall length of these losing periods is reduced.
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It is also interesting to analyze the yearly and monthly performance of the portfolio to see how it compares with the Asirikuy systems by themselves, something which would show us the arrange of possibilities we could expect for our first year, month and subsequent years of trading this combined system portfolio. The results are shown on the images above and below.
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The images above confirm that the portfolio is a great improvement when compared with the three systems traded by themselves. Overall, we do not get any losing years for the past 10 years and - even though the draw down of the worst losing months does increase - it does so in a much smaller proportion than the most profitable months. The profitability over the years also increases very significantly showing us that the effect of profits is indeed additive while the effect of combined draw downs is "hedging" in the sense that when any of the systems enters a draw down period some of the others are bound to enter profitable periods. The draw down periods of the systems never overlapped perfectly during the last ten years and only a few months of combined draw down are ever seen. As you see above, the largest losing month does not give us even half the profit of the most profitable month and profitable months are overall much more abundant than losing months.

The significance and analysis of this findings is tremedous. The building of these portfolios will allow us to reach higher profit targets with diminished risk and to have worst-case scenarios (double the projected maximum draw down) that are below our profit targets. This could mean that this same porftolio traded with a Risk = 3 would have an average yearly profit near 57% with a maximum draw down near 15.6% and a worst case scenario of about 32%. The use of portfolio trading will become our most important trading tool within Asirikuy and within the next few months several portfolio live accounts both owned by myself and challenge accounts will hopefully be added to Asirikuy.

I am also building a wealth development plan based on combinations of Asirikuy systems (including all systems and different currency pairs) that will be our final test of all these likely long term profitable systems. A plan with regular additions and a 1000 USD initial investment to get to a 5 figure yearly income within 10 years with a worst case scenario below 50% is what I currently have in mind. As you see I am very excited about these developments as the combination of long term profitable systems is proving to be much more than the simple sum of its parts. I hope you are excited as well so feel free to leave any comments, questions or opinions you may have :o).

If you would like to learn more about Asirikuy systems and to begin your journey towards long term profitability in forex trading please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

The Asirikuy Forum... Making Asirikuy a True Community

If you have read my blog frequently then you are aware of the fact that I have never liked the way in which automated trading forums work. I have outlined their problems several times in the past which are mainly summarized as a "cyclic development syndrome" in which systems are developed without any significant evolution towards long term profitability. This problem has many causes which range from the lack of knowledge about the requirements for a system to be likely long term profitable to the inherent difficulty in the development of sound trading strategies. The over-development of entry criteria and the use of unsound trading tactics are amongst the main consequences of the traditional "automated trading forum" approach.

However after several Asirikuy members suggested the creation of a forum to me (and after I refused several times) I decied to ask myself a simple question. Can the asirikuy community do any better ? Can you create a forum in which the possibility to develop long term profitable systems in a community environment becomes real ? The creation of such a forum demands the overcoming of all the problems which have been evident on automated trading forums in the past.

How could you overcome all these issues ? My first thought has always been that the lack of direction and knowledge is the main reason why forums fail to develop sound trading systems. The problems that arise from these two are almost endless. You always have the use of backtests with limited quality or with the obvious exploitation of backtesting faults coupled with the suggestion of unsound trading techniques - such as Martingales - to improve trading systems which have exit-related problems (which are never addressed due to the over development of entries found in forums). There is a lack of systematic evaluation and the lack of any judgement over the quality of the trading system ideas proposed.

I plan to solve all these problems on the Asirikuy community forum. How ? We will have very directed and efficient development. I will receive all system ideas and I will strongly moderate the development forum so that asirikuy members are able to learn and development can stay away from trading ideas which won't work and implementations which are detrimental to long term profitability. This does not mean that we will only develop "what I want" but we will develop what "can work". I am convinced that if development is centered around systems which can be backtested reliably, which use adaptive techniques and which use sound money management it will only be a matter of time before we get our first community developed long term profitable systems.

On top of serving as a center for development, the asirikuy forum will also deal with questions people have about the material available on the website, backtesting, programming, system design, etc. The Asirikuy forum will become another key knowledge base so that people can exchange ideas and grow their knowledge about automated trading system development.

One of the main objectives of the Asirikuy Forum will be to make Asirikuy a lot more like an online community. Having the ability to know and interact with the different members will help us create that community-feeling which I have always wanted Asirikuy to have. By working together and building content in a community type environment I am hopeful that we will be able to make Asirikuy much more than what it already is today. We will have a community with a high knowledge-standard in automated trading which will be committed to the development of trading systems, not be sold, but to be traded for our long term capitalization.

If you would like to learn more about the forum or about the trading systems we are currently trading at Asirikuy please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

The Asirikuy Index : A General Performance Indicator

Yesterday while writting all the material which is added weekly to asirikuy and doing the weekly video additions I started to ask myself if there was any way in which I could measure the current performance of asirikuy as a whole. That is, I wondered if I could come up with a given statistical tool which would measure the performance of all the trading systems of asirikuy simultaneously. Then, after a lot of thinking time, I realized that there was a very simple solution to this measuring problem. Today's post will be dedicated to the communication of this new measurement tool called the Asirikuy Index.

So what is the deal with measuring Asirikuy perfomance as a whole ? In asirikuy we use many different trading systems which I have coded (partially or totally) and we have many live accounts currently running these trading systems on different brokers, settings, etc. We know how all these trading systems are working separately but there was no way for me to communicate the joint performance of all asirikuy systems to the world without disclosing the tests. Moreover, there was no way in which members could get an idea "as a whole" of how asirikuy was doing (all the joint trading systems) but they had to go over all the tests to know what the "global performance" was looking like.

Then I had the idea to come up with a number which could be a global indication of the equity production of asirikuy, a number which could be disclosed to everyone to give people a feeling of how asirikuy was doing. This number should be simple enough to give anyone a straight forward idea of how the tests on the website are doing in general - without needing access - while providing a tool for current asirikuy members to understand how asirikuy is performing as a whole. The number I came up with is what I call "the Asirikuy Index".

What is the Asirikuy Index ? It is a measure of the joint performance of all the live accounts traded on the website. The index is simply the sum of all the current equity percentage gains or loses of all the trading systems being traded. The index simply tells you "if you were trading your capital with the exact same systems within the same brokers and with the same number of accounts (of the same size) this would be your current profit/loss". It is a true measure of Asirikuy's performance as a whole and lets the world know how we are doing, something which may be something people want to know before joining the website.

For example, if asirikuy currently had only 3 live accounts and their results were +20, +12 and -25% then the asirikuy index would be 7% (20+12-25), meaning that if you had opened three accounts, funded them with equal amounts (for example, three 1000 USD accounts) , on the same brokers and with the same settings you would have gained 7% (of a single account's investment) up until now. Of course, the Asirikuy index could be manipulated by removing bad accounts from testing but I guarantee that this won't be done as if any accounts are removed from testing their current draw down will be kept as a part of the index, as it was a realized capital loss.

The current Asirikuy Index is 95.18% and it will be updated each week to reflect changes on the weekly profits and loses of all the live trading accounts. Of course, the measurement is not perfect and it has a lot of room for improvement but it is a very basic view of the overall performance of the trading systems. It also provides us with a glimpse of the effect of broker and system diversification since the index is the result of the combination of several brokers and expert advisors. In the future we will also be able to do cool things, like plotting the Asirikuy Index as a function of time !

If you would like to learn more about the trading systems used in Asirikuy and why I consider them to be long term profitable please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

The Asirikuy Website ... A Milestone Achievement

Few times since the beginning of my blog I have had the pleasure to announce a milestone achievement. The introduction of my ebook and newsletter were certainly very important to me but today I am going to show you what I have been up to for the past few months. Today's post will be dedicated to announcing the official release of the Asirikuy website. What is the Asirikuy website besides another weird name Daniel likes to use ? The website -besides the end of a lot of php and flash edition- is the culmination of more than 2 years of arduous work and development on the achievement of profitable automated trading.

Many of you may be wondering...What the hell does asirikuy mean ? It is a very simple Quechua word which literally means : smile. Because that is what I get after so many years of dedication to the forex market and this is what I want people to get when they trade. I want people to get a smile.

The asirikuy website will be from now on the place I will use to publish all the newsletter related materials including videos, weekly newsletters, myfxbook links, etc. All my newsletter subscribers will become asirikuy website members and through the website we will develop a community around the goals and methods outlined on the homepage (all newsletter subscribers should have received their asirikuy logins and passwords by now, if you are a subscriber and you haven't been able to access the website please email me ASAP!). The website will also allow me to share many more things than what I could previously achieve through the use of FTP servers. I will be able to easily post news, research results, tips, etc. The website definitely also makes life a lot easier for my subscribers with easy to access links for all the content plus the elimination of the need to weekly change FTP server passwords.

My objective for this year with Asirikuy is to make it the best source for people interested on automated trading on the internet. I want us to have the most thoroughly developed and tested automated trading systems online with the most sound concepts of long term profitability and capital preservation. I want people to view Asirikuy as an education center to truly acquire confidence and learn how to become long term profitable in automated trading by truly understanding the trading systems used, rather than just any of the other websites which just mindlessly review everything that comes out on the market. with no idea or perspective about the long term profitability of the systems they trade .By the end of the year I hope we have at least 6 or 7 trading systems and at least 30-40 live accounts to show the world how there is a way to be long term profitable when sound trading tactics and analysis are used.

With my public release of the Asirikuy website also comes a major change to the newsletter subscription. It became clear to me after writing the whole Asirikuy website and thinking about my long term goals that in order for people to understand my trading systems and trade them to their fullest the ebook is an absolute must. Reading the ebook and having the live testing information as well as the weekly newsletter and training videos will allow traders to get a full grasp of what is going on and actually have a very good chance of becoming long term profitable with forex automated trading.

For this reason the membership to Asirikuy will cost 30.12 USD for the first month and then 7.21 USD for subsequent months. This way I will be able to unify all the content and have people get access to all the ebook, newsletter and both video databases (with more than 8 hours of training videos). Current newsletter subscribers will also get the ebook and access to the ebook video database. People who have previously purchased the ebook will be able to join the newsletter for the regular 7.21USD monthly fee (just send me an email telling me your interested and I'll send you a link to issue the payment).

I am also very interested in hearing what you guys think about the website and the idea, please leave any comments you may have ! :o)

If you are interested in Asirikuy or if you would like to know more about my journey through the world of fx automated trading please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !