FXstreet.com Live Sessions Archives: Non-Directional Trading, the New Frontier

Expert: Reggie Henkart, Foreign Exchange Trainer and Independent Representative at FreedomRooks

Summary:
This session will go in detail on how to trade non-directionally, creating a hedge, make an awesome return only working 15 minutes/week, without having to be awake at odd hours.

Session Material:

We are using a strategy that is changing the currency trading industry.

Imagine: no guesswork, no charts, no psychology, just an amazing return on your money, while working only 15 minutes per week.

Fig.1

The top in Fig 1 is the EUR/USD, the bottom is the USD/CHF. Can you see the correlation (like a mirror)?

What would happen to your money if you are buying both?
Nothing! Precisely. This is not how you make money, this is how you hedge yourself, virtually.

You can make money three ways: carry trade, buy low/sell high and equity swings (Fig 2).

Fig.2

1. Because we trade at a 400:1 leverage, so far, the carry trade has given us an ROI from 11% to 85%, depending, on the currencies selected and the margin percentage and the government’s rate cuts or increases. This, by the way, requires no work on your part. All you have to do is buy the currencies and hold them.

2. Each currency has its own movement, so we place pending orders below and above our entry prices for the currency on top of the mirror, and also for the one below the mirror. These pending orders are provided by the FreedomRocks software for $100/month. We have no idea where the price will go, and we don’t care, we make money either way, because we will always buy low and sell high. Eventually, the pending orders will trigger an average of 3-4 times per week. Other than glancing at your computer before and after you go to bed, there will be times when you will have to replace the pending orders when they get triggered. At a three minute per hit adjustment, you will have to work about 15 minutes/week, whether it’s a $10k or a million dollar portfolio. This is during daytime hours, when you are awake. You don’t have to trade in the middle of the night.

3. The correlation between the currencies is not 100%, it is around 97-98%. So, in the 2-3% left, all currencies may all go up or down. Dr. John Gray (Men are from Mars, Women are from Venus) endorsed my book Hit the Spot, How to Tame the Currency Market (Fig 3), as he made 50% in four weeks. That is because he took advantage of all the currencies that were going up. (See Equity Swings in Fig 2). We know that currencies may also go down together. I created some tools which we will go over in the showroom. You can also find these in my book. To learn more about strategies and tools, please feel free to go to www.hitthespot-thebook.com.

Fig.3

Other figures we will look at:

Fig. 4

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Fig. 5

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Fig. 6

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Fig. 7

Speech Material:

Moderator_FXstreet
Welcome to all in the Fxstreet.com Showroom! This session will be held by Reggie Henkart from FreedomRooks. Reggie will present his Non-Directional Trading technique. We will start in about 15 minutes. Thank you for joining. In the meantime, you can read the material Reggie prepared for you. You have it at the left part of your screen. Thank you.

Moderator_FXstreet
Welcome to all. This is an open session so you can make questions or comments and Reggie and all other attendees will directly read them. Don't hesitate to interact. The session will start in about 10 minutes, please wait until then to start asking. In the meantime, you can read the material Reggie prepared. It is displayed on the left part of your screen. Thank you.

Moderator_FXstreet
We are pleased to welcome back Reggie today in our Showroom. Reggie Henkart became a Forex Fund Manager in 1994, trading quarter million dollars account and having a team of 20 traders under his supervision. Today, Reggie gives classes worldwide on how to trade this strategy. Reggie is Foreign Exchange Trainer and Independent Representative at FreedomRooks.

Moderator_FXstreet
Enjoy the session with him! Remember the room is open so that you can make all your questions and comments directly yto Reggie. The charts he will talk about are displayed at the right of your screen. Thank you for your participation.

Reggie_Henkart
Good day every body

Guest_libra02
hi

Reggie_Henkart
I want to thank you for joining this showroom

Reggie_Henkart
If you read my material on the left, you notice something unusual

Boykie
hi

Reggie_Henkart
We buy currencies that mirror each other

altaorbe
yes

Reggie_Henkart
What happens to your money when you do that?

lance-gft
nothhing

Reggie_Henkart
Right!

lance-gft
actually lose on spread

Reggie_Henkart
and that is exactly what we want

Reggie_Henkart
we want to be hedged.

Guest_libra02
margin percent what does that do?

Reggie_Henkart
The spread is not a big consideration in this strategy...

Reggie_Henkart
because this is long term Forex investment

Guest_libra02
could you explain the role of margin

Reggie_Henkart
We make money 3-ways

Reggie_Henkart
I will get to margin in a sec

Guest_libra02
thanks

Reggie_Henkart
the first way is in terest. please look at fig6

Moderator_FXstreet
[there is no sound, this is a text session. thank you]

Reggie_Henkart
This is the Allocator where you give the info to the program: equity, currencies choosen.c

Reggie_Henkart
Fig 5 will give you the result

Reggie_Henkart
can you see the interest on the bottom right?

Reggie_Henkart
83.09%

Reggie_Henkart
That is your ROI at the end of the year if you do nothing

Reggie_Henkart
just own the 2 currencies

Reggie_Henkart
any questions on that?

Boykie
spot or futures?

Steveu
Reg, so your headging method is to earn the interest?

Reggie_Henkart
In other words, just by owning these 2 currencies, and there is no work involved after that, you willget 83%/year

Reggie_Henkart
This is spot

Reggie_Henkart
the interest is only the first way we make money, 2 more to come

Guest_libra02
what about the margin call if prices go against you ?

Reggie_Henkart
very good question

Reggie_Henkart
remember, we own currencies that mirror each other at around 98%...

Reggie_Henkart
if one goes against you, the other one will go for you keeping your money flat... but earning interest

Steveu
how do we find out which pairs will yeld the most interest?

Reggie_Henkart
The margin is controlled by your choice in fig 6

Reggie_Henkart
where it says "Margin Percentage"

Reggie_Henkart
the smaller the amount, the less chances you will get a margin call, the higher the greater.

Reggie_Henkart
This is still not the Holy Grail (sorry)

Reggie_Henkart
but the hedge gives us an amazing protection.

Reggie_Henkart
the second way we make money is by always buying low and selling hi

Guest_libra02
what does margin of 12 percent versus 11 percent means????

Reggie_Henkart
both currencies have their own separate moves

Guest_libra02
for our account balance

Reggie_Henkart
so the Manager will give you pending orders so when the currency goes down, we buy; when it goes up, we sell.

Guest_libra02
can you give me your email so i can ask you more questions later

Reggie_Henkart
reggie@4xez.biz

Reggie_Henkart
the difference of 1% will get you more (or less) interest per year

Reggie_Henkart
If you look at fig 4

Reggie_Henkart
you will see how the broker's platform looks like after all orders are placed

goncalo
Can we use the software with our broker platforms if it allows hedging?

Reggie_Henkart
This is hedged at 3 currencies,the pound, the Franc and the Euro

Reggie_Henkart
All you have to do now is glance when you go to bed and wake up, and adjust the pending orders when they are triggered

harsh
hello sir

Reggie_Henkart
at 3-4 times per week, that will take you about a 15min total work per week

Guest_Fxtrader
How did you arrive at the lot sizing ?

Reggie_Henkart
Goncalo, as far as broker's platform, we work with 3 that has accepted our parameters

Reggie_Henkart
GFT, FXCM and Interbank FX

goncalo
ok

harsh
sir i have some questions regarding forex trade .

Reggie_Henkart
go ahead harsh

Reggie_Henkart
The lot sizing is given to you by the Allocator

harsh
sir i want to open new account in your comp.

goncalo
what is the minimum suggested to start with?

Reggie_Henkart
for more info, there is a 14 min video on the product at www.ezfx.biz

harsh
5000 dollar

Reggie_Henkart
Yes, $5 k is sufficient for 2 currencies

harsh
but i am in india

harsh
can i trade through your portal

Reggie_Henkart
So, let's look at the third way we make money in the program

Reggie_Henkart
Harsh, we have members in over 80 countries around the world

Reggie_Henkart
The third way is equity swings

harsh
how will i transfer my money into your account

Reggie_Henkart
Because it's a 98% hedge, the 2% left over will go half the time against you, half with you

goncalo
working only with 2 currencies, is the hedge as good as with more pairs? can a bad correlation put us in danger?

Reggie_Henkart
Harsh, you do that directly to your broker. We don't trade your money, we teach you how to do it in 90 minutes max

Reggie_Henkart
Yes Goncalo, this is still hi-risk, hi-return

harsh
i also doing trading in forex with high advisory services ltd. but i am not satisfied

Reggie_Henkart
but if you double your money every 10 months, and have a margin call every 7 years, you still will do very well...

Guest_libra02
how many currencies do they recommend to be able to get maximum out of this program and what margin percent ?

Reggie_Henkart
provided you follow a good money management strategy

Guest_Fxtrader
What if interest changes?

Reggie_Henkart
Libra02, we actually can not make recommendations, but I found...

goncalo
I get your point. can you extend the equity swings?

harsh
6

harsh
yes

Reggie_Henkart
the buying the pound and the euro, on one side of the mirror, and the Franc on the other gave the best results

Steveu
If the hedge pairs goes against you, do you have any stop loss in your hedging strategy?

Reggie_Henkart
I personally use 10% margin on my first portfolio

Guest_libra02
I am not asking for your advice in your experience or many others which is the best percent which gives you the maximum result your opinion ?

Reggie_Henkart
after doubling I will go up to 12.5%

Guest_libra02
how many pairs

Boykie
correlations are okay but the interest rates must also be okay - please comment

Reggie_Henkart
Steveu, we don't have any stop loss because, by definition, the mirror is one...

goncalo
do you provide assistance for money management?

Reggie_Henkart
Your defense strategy is twofold (and well explained in my book "Hit The Spot") fig 3...

Steveu
so when that 2% of the time it didn't correlate and is against us, how do we minimize the loss?

Reggie_Henkart
the first defense is the margin percentage

Guest_libra02
at what point do you close your positions I am not asking for your investment advice

Reggie_Henkart
The second is taking profits.

Reggie_Henkart
I ask for a check from the broker

Reggie_Henkart
every time my profits goes above 25%

Reggie_Henkart
you do that 4 times, and you have doubled your money

Guest_libra02
by closing more frequently does not that give you more lots to purchase and more profit in future correct

pipseer
Sorry, but I joined late and my question may have already been asked: do you have performance figures starting with a beginner's account size? have you a speadsheet with this trading model into which we can enter our starting account value and then see the performance for our beginning entry?

Reggie_Henkart
more important, the money left in the broker is not yours

Reggie_Henkart
It's OPM, that's why I don't mind raising the percentage

Reggie_Henkart
Libra02 closing more frequently will just add brokerage fees. It also depends how quicly you got a huge equity swing

Boykie
where can we buy your book?

Reggie_Henkart
Pipseer, unfortunatly the NFA doesn't allow to share performance figures because they don't guarantee future results

Reggie_Henkart
what we do is let you go on a demo account so you can play with it and see for yourself

Guest_libra02
but more lots you have more profit which should compensate the spread correct?

Reggie_Henkart
my book is at www.hitthespot-thebook.com

Guest_Fxtrader
What tools do you refer to on the left?

Reggie_Henkart
If you want to buy more lots, you either add more equity...

Reggie_Henkart
or increase the margin percentage (and the risk)

Guest_Fxtrader
Also can u explain Fig 2 in more detail. thx

Reggie_Henkart
On the left, you see what the FreedomRocks program and the Brokerage looks like at various stage of the strategy

Guest_libra02
suppose you started today and there was a higher prices eur/usd and usd/chf suppose tomorrow prices went down on eur/usd only will that make you account minus like crazy correct

Reggie_Henkart
Fig 2 is a very important chart

Reggie_Henkart
it shows you the 3 ways you can make money...

Reggie_Henkart
and the risk of a margin call depending on your margin percentage

Guest_libra02
basically you strategy involves the relationship between eur/usd and usd /chf is it possible that relationship can chane in futture or swiss government joins euro zone

Guest_Fxtrader
Equity savings ?

Reggie_Henkart
not really like crazy but it will fluctuate. And the swiss will probably catch on...

Reggie_Henkart
I had my equity go down as far as 64% to have it back at over 25% in a few weeks

Guest_Fxtrader
Any strategy for the yen pairs?

Guest_libra02
basicaklly account grows because of positive roll over interest and buying low and selling high correct

Reggie_Henkart
Libra02 I don't this the Swiss will ever let go of their franc

pipseer
can you give us a litle 3-4 step summary of how this works: 1-deposit funds, 2- wait for our pending order instructions ...

Reggie_Henkart
fxtrader: I'm not sure what your question is, but I save my equity every time it makes 25%

Reggie_Henkart
sure pipseer,...

Reggie_Henkart
1. join freedomrocks (www.ezfx.biz)

Reggie_Henkart
2. open a demo account

Reggie_Henkart
3. trade on a demo for at least 2 weeks

Reggie_Henkart
4. oopen a live account

Reggie_Henkart
5 start trading

Guest_libra02
When did you start in the market? what do I need to provide you to join in and how long is the trial?

Reggie_Henkart
Libra02, I have been trading Forex since 1993 (before Windows) and FreedomRocka since February 2006

Guest_Fxtrader
any starting capital recommendation for real a/c

Reggie_Henkart
Librao2 all you need is to fill the application and the free tial is a one time 15-day trial

Guest_libra02
is it possible to do 20 percent a month with 11 percent margin and 3 pairs your opinion not advise I am looking for ????

Reggie_Henkart
Be aware, that you may not be profitable in that particular time frame, but you will see how it works

Guest_libra02
can I do more than 1 trial meaning 4 weeks to make sure if it works

Reggie_Henkart
Libra02, it's possible, we have had results of over 50% a month. My average is around 10-15% a month

Guest_libra02
Am I correct to say that there is a chance to make 20 percent a month with 11 percent and 3 pairs ?????

Guest_libra02
sorry you answered my question

Reggie_Henkart
sorry, only 15-days, but we have a 10-day 100% money back guarantee, followed by a 20-day 50% money bac

Boykie
what is difference between you and fredomrocks?

Reggie_Henkart
Boykie, I'm a member of FreedomRocks

Guest_libra02
you are a member and representative too are not you ???

Reggie_Henkart
That's correct

Reggie_Henkart
One can chose to be a customer only or a rep

Reggie_Henkart
Any other questions?

Guest_libra02
It has been a pleasure speaking with you i think member is limited representative has more potential

Boykie
what happens if % of correlation changes?

Reggie_Henkart
not much, countries change here and there, usually by a quarter point...

Guest_libra02
why only 4 pairs does FR looking for more pairs with correlations

Boykie
one must be careful not to be charged interest - comment

Guest_Fxtrader
What is the role of USDGBP

Reggie_Henkart

first of all it's GBPUSD and it's one of the 4 choices

Guest_libra02
why 4 pairs is Fr looking for more pairs or have they done a study to find more pairs //???

Reggie_Henkart
we only have 4 pairs and will not look for more...

Guest_libra02
Any reason for that

Reggie_Henkart
I personally am strongly against using the yen..

Guest_libra02
why?????

Guest_Fxtrader
I mean why have it in the portfolio when EURUSD and USDCHF are 98% correlated

Reggie_Henkart
in FR, the correlation is the worst because it's not in Europe like all the others

Boykie
what happens if correlation %'s change?

Guest_libra02
but if some one have a bigger risk tolerance will it make sense to use some thing with less corelation

Boykie
we must be careful not to be charged interest - comment

Reggie_Henkart
libra02, of course, it's your money. But I am all for capital preservation, not profits. The profits are already huge enough without adding more risks like using the yen

Reggie_Henkart
Boykie, that's the beauty of the program, the interest is always positive and huge

Guest_libra02
most of my questions are for educational purposes only .i believe long term conservative strategy pays off

Reggie_Henkart
Just a recap of how to connect with me:

Reggie_Henkart
email: reggie@4xez.biz

Reggie_Henkart
phone : 415-382-1124

Reggie_Henkart
book: www.hitthespot-thebook.com

Reggie_Henkart
yes libra02, right on

Reggie_Henkart
but it has to go with capital preservation

Guest_libra02
what is the best time to call you

Boykie
thx

Reggie_Henkart
it's my cell, I'm either busy or I'll take the call. Leave a message if I'm busy

Reggie_Henkart
Ladies and gentlemen, it was a real pleasure typing with you

Guest_libra02
thank you

lance-gft
Thanks, Reggie

Boykie
thanks

Guest_patpowell
thanks so much

Guest_libra02
last question if too many people become members will it be good for me or no ??????

Reggie_Henkart
I wish you all wonderful, exciting trades and remember, that the reason FR is so successful and all over the world is that there is no psychology involved.

Reggie_Henkart
It's a sound system with amazing results...

Guest_libra02
can it be proven in black and white?

Reggie_Henkart
Broker's will tell you that 90% of people opening a live account will lose it all within 60 days...

Guest_patpowell
Do you also do directional trading from time to time?

Reggie_Henkart
we have beginners worldwide that are using this for almost 2 years, and they are still well alive

Reggie_Henkart
with a 3.2 trillion/day don't worry about more people

Reggie_Henkart
Yes patpowell, I do

Reggie_Henkart
Guys, I'm sorry but I need to go. I have a training that starts right now

Reggie_Henkart
Have a wonderful day.

Boykie
u 2

Guest_Fxtrader
thx

Moderator_FXstreet
Thanks to Reggie and to all of you for your participation! I hope you have appreciated.Within the next 24 hours, you'll find the transcript of the session here: http://www.fxstreet.com/live/transcripts/

Moderator_FXstreet

See you soon!