Boris and Kathy's FX Blog www.bktraderfx.com

We continue to attract many news subscribers and bring back some of the old ones all of which has resulted in serious misunderstanding of our trading style and trading record, so I thought this week I would reprint a few emails from the past several days to clarify the issues once and for all.

Dear B & K ~

Is there a track record showing gross and net total wins and losses over an extended period of time?

If you are netting 200+ pips in profit a month that looks pretty good, unless your gross total of trades reflects losses greater than the wins on record.

Listen, I am not someone who likes to be the gad-fly. It's not my strongest card in the deck nor is it something that anyone wants to do. It's just that doing one's due diligence is critical when it comes to this business and should therefore be seen as part of one's business plan. Nothing personal, only rational. So please understand the motivation for this inquiry. It's not motivated by some need to find things wrong with the system. In fact, the questions come up in real time and are based on observations that beg to be clarified..that's all. So, hopefully you can see this from my point-of-view.

To our long-term success and happiness... and, by the way, have a happy summer solstice.

My answer below

All our trades are net in the trade record. We do not hold any floating losses off the books.

Let me just explain this further. Some signal services will issues hundreds of trade recommendations with no stops or very wide stops of 1000 points of more. They will then book profits on trades that are successful but let the bad trades simply float on the account without recognizing those losses. So the next effect is that they will claim WE MADE 800 POINTS THIS MONTH, but neglect to tell you that if followed all of their recommendations you may also be floating 6000 points in losses on the books. Let me reiterate at BK we never do that. The record you see on the website is based on all of our trades, which are all closed out typically no more than 3 hours after we initiate them. Therefore the numbers you see are actual results of the recommendations, there are no hidden “off the books” trades ever.

In our calling all past members we’ve had this comment come up a few times – “I thought it was dishonest for them to count their losses with one lot when their advice was to always buy 2 lots”

That is not correct is it? How would you guys respond to that?

My answer below

Absolutely false, All losses are counted as 2 lots in the record.

K’s answer:

We don’t do that. We ALWAYS double count losses on our track record. If you go through the track record of closed trades- you can clearly see that. Only counting one loss is something that we are adamantly against and we pride ourselves on honesty. The -40 or -56 etc are all the additions of 2 lots since our stop is usually 20-30 pips away from our entry.

I hope that clarifies this issue, but just for the record from now on we will make sure to ALWAYS include the total 2 lot loss in our exit emails. As you can see we do that without fail in our track record, but occasionally in the heat of the moment as I am scrambling to send out a get out email I may forget to multiply by two in the email (I am notoriously bad typist and the task of typing quickly and multi[lying at the same time eludes me- my apologies - and I will make sure to correct that in all future correspondence.)

Finally I want to conclude this weekly with response that K wrote about our track record – most specifically why the results over the past 7 weeks have been so radically better than the prior 4 months. Her words say it best so I am just going to quote her.

This is a very active trading service and our forte is anticipating news. Typically you will get 5-8 trading alerts each week (more than the rep indicated), some during US hours, some during European or Asian hours. Every day, we send out our trading plan for the next 24 hours with specific times that we will be placing trades - so that you can plan accordingly and will never be surprised. The holding period for the trades is very short - so you should only subscribe if you can be an active trader. We send our alerts out in SMS, email and chat room format with audible alert, so hopefully one those if not all will work for you.

Our goal is to average 200 pips per month. We moved to this trading style in on May 1, which is why the rep stated that these are the most reliable results. During that time, we have made 56 trades. In those 8 weeks, we have only had 2 negative weeks. The biggest weekly loss was 117 pips, the biggest gain was 161 pips. Since we moved to this model, we are up 477 pips. The reason why we trade so much during the week is because you never know which piece of data will be the big surprise. We look for a few small winners, and even smaller losers or scratch trades and then maybe 1 or 2 big winners each week.

More specifically on performance:

So far in June, we are up 92 pips,

In May, we were up 385 pips

Between Jan and April - we were trading differently, sometimes the strategy worked, sometimes it didn’t and we realized that it wasn’t consistently replicable. In the new model, each trade is independent of the last, which means that we wont be trying to fight a trend trade after trade after trade. Instead, our analysis of economic data and our directional call is not sensitive to whether the market is range trading or trending.

In April we lost 329 pips, in March 116, in Feb we made 169 pips and in Jan we made 31 pips.

Since the beginning of the year, we are up 232 pips.

Our new model assures that the performance is far closer to the May and June results than the Jan to April results. The best way to see this yourself is to trial the service. If we do not deliver the results that we expect, you can always cancel with no obligation or fees.

I hope this answers your questions regarding BK. We greatly value your interest in our service as you join us in our “reality based” trading tour. Please feel to write us anytime.

Have a great week-end.

B&K