FXCM's Horrible Trading Advice (Video)

Man, thats some really bad liquidity, I do algo-trading so my program's always check liquidity first, never knew their depth of market was so crumby...

My system is a factor model, it's focused on correlation. I wouldn't consider it the best, but it is profitable. My all time PL is 5.5% (on a 6 month account)

Couldn't agree more.

I should note: I accidentally typed would instead of wouldn't when I said wouldn't consider my model the best. Terribly sorry for the mistake.

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not sure if it's entirely fair pulling an article , written years ago when things were correlated, and suggesting that article implied those correlations will exist for all times....

they don't and the article didn't.....

there are many such articles on this same subject that quickly come to mind.... things change..... no one in those articles suggests differently....
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but the poll does not mention trading advice..... it simply asks 'do you trust fxcm'.... my answer is recorded and backed up by many fxcm accounts...... can answer the same for oanda......

should we blindly follow trading advice.... no more than we should expect correlations true years ago to be equally true today.....
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if your dead set on huntin systems to debunk, start here...... surprisingly a lot can be learned...... even from the worst.....h

Except they do make that claim:

"Gold traders may also be surprised to hear that trading the Australian dollar is just like trading gold in many ways"
"Generally speaking, this means that when gold prices rise, the Australian dollar appreciates as well"
"The proximity of New Zealand to Australia makes Australia a preferred destination for exporting New Zealand goods. Therefore, the health of New Zealand\'s economy is closely tied to the health of the Australian economy"
"The correlation of the NZD/USD with gold is slightly less than that of the Australia dollar but is still strong at 78%"

Neither Australia or New Zealand export much gold. I showed for NZ, but looking at Australia's gold exports, It is higher at 7.9%, but one must take into account things like coal, copper, iron, and petrol products like oil all make up over 52% of exports outweighing any significant effect of gold exports. Now gold certainly plays a role, but a very very minor one none the less. And they suggested trading NZD and AUD almost as if it was an alternative to gold not proposing other factors.

I did make a mistake there, you are right it should have said their advice, not just fxcm.

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every sentence you quoted from them is true.... every sentence you personally wrote is true..... your entire post is true....
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correlation articles from those years, fxcm, Kathy lien, t d ameritrade and others, all just noted the then current nzdusd to gold correlation of those years.... all were true for that period of time...

can't remember them implying the nzd correlation was due to gold exports.... correlations can be quite complex..... they can be happenstance..... they can change radically even on an hourly basis....

keep in mind, new zealands entire gdp is comparable to oklahoma's..... and there are quite a few texans that own more gold than the new zealands central bank....

for me, reading trading advice is more for awareness than true laying down money.... i always read with respect to the articles timeframe period..... there was a time i suggested buying the usdchf.... that was then.... not now.... things change.....
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and if i might be allowed to diverge from this threads main theme..... i know 3 little girls that more than doubled their accounts this summer.... one tripled.... and it was not from focusing on the negatives but by focusing on the positives.....

it's your choice....h

Just to clarify for everyone, I am not aiming to bash FXCM's service, rather to clear misinformation.

BUMP