Updated: Mar 13
In this post we'll review the performance of Thumb Moneys FX Miner "FX Genius" after 16 Weeks mining the EURUSD currency pair.
Select one of the following links to review the historical commentary of this account.
1. FX Miner Key Stats
During the 16 week trial period the FX Miner produced $2,453 profits trading a $1000 Demo account. Many manual positions were executed in parallel with the miner operating in the market however 90-95% of trades were triggered by the miner. A consistent win rate of over 90% was achieved over 2297 trades with 119 positions closed with a loss. No stop losses were used during the trading period.
2. FX Mining Principles
The FX Miner is built on Thumb Money principles that automates a traders workload so fewer opportunities are missed as traders go about their day. The FX Miner offers advanced settings to manage risk which include power settings, max trades and out of trade range parameters. The FX miner is not a 100% hands-off trading solution, but is an advanced and effective miner that requires very light management. As with the Thumb Money method, it works in certain market conditions, not every condition.
3. The Market Opportunity
The FX Miners inaugural trial was executed on the EURUSD on November 22nd, 2021 as depicted by the green arrow below. The miner took advantage of the price consolidation until the end of January after which the volatility picked up significantly. The miner is dynamic and can be adjusted by traders to adapt to market movements. During the 16 weeks, the miners trade direction was re-configured periodically from Buy to Sell (and vice versa) depending on the price action. Breaking above resistance levels would typically indicate a good sell opportunity and breaks below support would trigger a buy opportunity. The risk level of the miner was reconfigured periodically to absorb the drawdown during an adverse market move and then configured more aggressively during a price swing back to the favorable price direction.
4. FX Miner Performance Review
The persistent market consolidation on the EURUSD would typically be frustrating for most traders who are betting on a long or short move up. There are several points below where the equity (yellow) trend line met the balance line (red) which provides an optional exit point to bank profits, switch the miner off, and move to the next opportunity. The FX Miner is not designed to run indefinitely in any market condition, therefore it's up to the money managers to determine when it's time to shut the miner down and withdraw profits.
The second chart below depicts the consistent profitability of the miner through periods of consolidation and high volatility.
Traders typically strive for very low drawdowns as high drawdowns indicate higher equity risk. Thumb Moneys risk management approach is very different as it affords traders significant room for drawdowns which in essence is the reduction in equity for each account. This is only possible on high leveraged accounts of 1:100 or more which has a higher level of risk but there are strategies to mitigate that risk. The below chart depicts a spike in the drawdown of equity during early February as the miner built into a large position and took profit on the upswing to the next resistance level.
The concept of FX Mining has been proven over the last 4 months as FX Genius consistently performs well across multiple currency pairs and tradable Crypto pairs available on MT4.
Over the last 16 weeks, the miner executed well through a number of adverse market conditions resulting from Geo-Political issues and Central Bank monetary policies.
This may be the last installment of the performance tracking of this account as time and effort are being re-directed to phase 3 of testing FX Genius on small live accounts.
If you want to find out how you can get involved with FX mining then keep a lookout for our upcoming workshops where you can test the miner out for yourself.
Author: Ryan Norris Creator of the Thumb Money Method
1. Performance Data PDF
2. Performance Data CSV