This is a letter we've received from a strategy user and we thought it brought powerful insight that we would like to share with all of you.
Jed
Also, just to let you know, I find it quite amazing that two moving averages and the so-called “mao†can produce so many positive results. It is truly incredible, to say the least! So simple yet so powerful.
Please do share with me your thoughts regarding the natural laws of economics in relation to a personal account growing with such massive momentum. Let me explain what I mean.
I have taken this current MINI demo account from $10,000 to over $19,000 since yesterday morning by ONLY using your system. It is a 1:400 leveraged account, but I am only trading 1.5 to 2 percent of the capital per position. All trades are placed based off of H1, H4, and Daily trends while most entries are placed in the M5, M15, and M30 in order to take advantage of the immediate shift in trend. Currently, I have five positions open on GBPJPY with only 4.1 percent of my capital in the market (there are three very small positions open with two positions open of 1.2 percent each). This position, only counting the current equity held, has yielded over $2,800, which takes the total profit to nearly $22,000.
Therefore, with this shared information, please tell me why there are not more people making millions of dollars in Forex. Please share with me why the seemingly natural laws of economics do not provide such incredible, massive growth in a short amount of time. I do not consider myself naïve as to believe I could simply continue producing these results for years to come and become a billionaire within five years despite following the same rules, the same plans, and the same disciplines. Therefore, may I ask again … why is this so?
(My Response to the Trader's letter)
Dear Trader
Regarding your results. If your numbers are accurate which I believe they are. I will offer this as my answer. Good money management, proper execution, ( ie exercising patience, good strong signals, and timing). And simplicity keeps you from getting bogged down.  Although he 1:400 leverage is posing a higher risk you are exercising prudence with your percentages of the account at risk.
I believe that you could continue to grow this account substantially over time. But to that level and at that speed...probably not. The reason is that the market will not always be this dynamic all of the time. But it would grow if you stayed true to the correct trading principles mentioned above.
Here is a question for you have you sustained any losses while doing this strategy yet? In this account? How about other accounts?
I think that the laws of economics are at work here because they are being adhered too. I once had a multi millionaire tell me that if you want money to flow to you, you have to learn to speaks its language with which to call it. I like to think that this strategy speaks to capital and calls it in. I think that consistency is the key to long term success with any strategy.
-Jed