In this post I review the Week 8 results of Thumb Moneys FX Miner which is currently in development. This is a continuation of the Introductory post of the FX Miner - Introducing the Thumb Money FX Miner & FX Miner Review: EURUSD (Week 5)
1. FX Miner Key Stats
During the 8 week trial period of the FX Miner produced over $800 of profits on a $1000 Demo account. Several Manual positions were executed during this time frame however over 98% of the work was completed by the miner.
2. FX Mining Principles
The FX Miner is built on the Thumb Money Principles taught on our free online Mobile Trading Course. The purpose of the miner is to automate a Traders Workload as they apply the Thumb Money Method so that fewer opportunities are missed as Traders go about their day. The FX Miner also provides advanced settings to manage risk, for example, a trader can set the miner to stop if the equity reaches a certain threshold. The FX miner is not a 100% hands-off trading solution but is an advanced and effective miner that requires very light management and the right opportunity. As with the Thumb Money method, it works in certain conditions, not every condition.
3. The Market Opportunity
The FX Miners inaugural trial was executed on the EURUSD, November 2021 as depicted by the green arrow below. The conditions that made this opportunity ripe for the FX Miner is that it was executed after a big push down after a number of days. Long positions were set where the Miner would execute a long trade (buy) every 4 pips up or down with a 2 pip take profit and then subsequently changed for testing purposes to 5 pips gap with 5 pip profit target. The most recent configuration is a 10 pip gap between each trade with a 10 pip profit target which is ideal for conservative traders as it affords money managers ample space to maneuver through adverse market moves. The market has continued to consolidate during December and finally broke the resistance level depicted by the green line on Jan 10th. The Price has continued to drop to the previous range. The mine has been switching between sells and buys throughout the period as no solid trend has developed.
4. FX Miner 5 Week Performance Review
The persistent market consolidation of the EURUSD will have proven to be very frustrating to most traders who are betting on a long or short move up. Thumb Money's FX Miner has capitalized on the consolidation and produced consistent returns. As the market oscillated in the range you can observe the account equity moving with it as depicted in yellow below. There are several points below where the equity (yellow) trend line met the balance line red. Each of these points are potential exit points to switch the miner off and move to the next opportunity with profits. 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.
Traders typically strive for very low drawdowns as high drawdowns indicate higher risk to equity. Thumb Moneys risk management approach is very different as it affords a lot more room for drawdowns which in essence is the reduction in equity for each account up to as much as 80%. This is only possible on high leveraged 1:100 and above accounts which has a higher level of risk but there are strategies to mitigate that risk. The below drawdown is indicative of a conservative risk management approach as the drawdown to date has not exceeded 25% even though EURUSD has been volatile during the trading period.
The EURUSD opportunity has proven to be fertile ground for the FX Miner and will continue to mine this market through 2022. The measure of a trading technique whether manual or algorithmic is not in the amount of profit that can be gained in a short period but how consistently it produces positive results over a long period. The FX Miner has consistently performed well across multiple currency pairs since Nov'21. More data will be forthcoming as testing continues.
If you want to find out more about the FX Miner please email firstname.lastname@example.org.
Author: Ryan Norris Creator of the Thumb Money Method
1. Performance Data PDF
2. Performance Data CSV