We have compiled a list of commonly received questions and our answers to them.
1. Please elaborate on your money back guarantee policy?
We charge SGP2000 for account set-up, and provide EA VPS hosting worth (SGP600 yearly). * The SGP2000 is a one time fee that comes with a 100% money back guarantee. New accounts need only require a minimum lock-in period of 6 months because we are confident that SFMT4EA only need 6 months* to recover the initial investment of SGP2000. In other words, if the SGMT4EA fails to earn back the SGP2000 you spent within 6 months, you may request a full refund with no questions asked.1. Please elaborate on your money back guarantee policy?
*Based on backtesting reports and feedback from existing investors.
2.What is the minimum amount to trade SGMT4EA?
We advise clients to start with at least USD10000 because the best performance is made when the account starts with a USD10,000 investment.
3.What differentiates SGMT4EA from other robots?
Most of the EAs currently in the market need to be updated frequently because the EA developer/marketer needs to make adjustments to the EA’s parameters in-order to maintain its profitability. Other EA systems may have lot of manual configurations that require users to change from time to time to stay profitable.
The first type of EA is called the curve fitting EA and it is made to accommodate only one type of market trend. However, the Forex market is always changing! Thus, curve fitting EAs are not ideal for extended use.
The 2nd type of EA is far too tricky to use and could backfire on the user if any configurations are made wrongly. The user still needs to keep their eyes glued to the screen and withstand all the stress if the account is draining. The EA provider can just say that someone is making profit because they used this or that set of parameters, hence pushing the fault onto the user.
SGMT4EA requires ZERO adjustment. Only the trading sizes are to be varied by us based on your account funding and on-going account equity balance. We project monthly compounded 3% to 10% returns or annualized 50% returns based on funds in your account for a full calendar year.
4. How to withdraw profits ?
The account opening is under your name and funding can be done by credit card and bank wired. We strongly recommend users to fund the account using Credit card because you can save the 3% bank wire charges. Besides, when you want to make a withdrawal, you may do it directly via the web account provided by the Forex broker.
Usually the withdrawal of funds will take 24 hours to process and the money will be deposited to your Credit card account. The processing period varies from bank to bank.
Free Margin and Used Margin Calculation Formula
• Your account deposit currency is USD.
• The standard lot size is 100,000 units of currency.
• Leverage is 500 (i.e. 500:1)
If trading a USDxxx pair:
• Margin = StandardLot * LotSize / Leverage
• Example (trading 0.1 lots of USDJPY):
• Margin = 100,000 * 0.1 / 500 = 20 USD set aside as margin (used margin).
If trading a xxxUSD pair:
• Margin = StandardLot * quote * LotSize / Leverage
• Example (trading 0.5 lots of GBPUSD @ 1.6216):
• Margin = 100,000 * 1.6246 * 0.5 / 500 = 162.46 USD.
How Many Pips Can the Market Move Against Me Before a Margin Call Takes Place?
In order to figure out how many pips the market can move against your position to bring the net usable margin to zero, take the net usable margin and divide it by the cost per pip:
Example a USD5000 account
Assumed Broker gave us 50% tradable margin then, USD5000*50% = USD2500
$2500 / $3 = 833 pips (or $497 / $3 = 832 pips for the 1 pip spread example - as you can see the spread is not a major factor in calculating the available margin).
The above assumes that you only have one position open at any given time in your account. If you have two or more positions open, then the price movements in each position contribute to the increase or decrease of your Used and Free Margin and it becomes very hard to calculate the Free/Used Margin precisely.
This margin calculation formula also assumes that the amount of Margin required to Open a position is the same as the amount of margin required to Maintain (keep open) the position. This will often not be the case as various brokers have different requirements for this amount, typically the margin required to maintain a position is lower than the amount required to Open a position (e.g. by 50%, which means that in the above example you would have to maintain a used margin of ($5000-$2500) * 50% = $1250, in other words the position could move ($2500-$1250) / $3 = 416 pips against you before the margin call.
So the conclusion of Margin risk is never over trade--- This is exactly what SGMT4EA is doing- Not overtrading!
In simplicity here is the Traders' Calculator. Click here to do the sum.
There are 3 types of drawdown in MetaTrader. They can all be equal but can also be different - depends on circumstances:
1. Absolute Drawdown - it's the max drop below your initial balance. E.g. you had 5k deposit, and the minimum level you've been down was 4.5k, then absolute drawdown would be 500 for you. or (5000-1563.15)/5000*100 =31.3%
2. Maximal Drawdown - the maximum drawdown in the dollar (We deposit as USD) terms. It's calculated as the deepest fall in your balance curve. For example, your balance rose to 8k, then it fell to 6k and then started rising again, then maximal drawdown would be 2k. or MaxDrawDown % = MaxDrawDown / its MaxPeak * 100%
MaxDrawDown% = 2000/8000*100% = 25%
3. Relative Drawdown - the maximum drawdown in term of the balance percentage. It's almost the same the the Maximal Drawdown, but the maximum percentage fall is considered instead of the maximum dollar fall. For example, as before you've been up to 8k then down to 6k and then started rising. Your Maximal Drawdown currently is 2k and your Relative Drawdown is 25%. Then your balance rose to 14k and fell to 11k. Your Maximal Drawdown becomes 3k, but your Relative Drawdow remains 25% as 3k would only 21.4% of your 14k balance.
To answer above question, the investors need to know:
How does margin trading in the forex market work?
When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. Most often, investors use margin accounts when they want to invest in equities by using the leverage of borrowed money to control a larger position than the amount they'd otherwise able to control with their own invested capital. These margin accounts are operated by the investor's broker and are settled daily in cash.
SGMT4EA partners with MAYZUS to enable investors to utilize margin trading facilities (1:500) and upon opening the trading account with our selected broker (MAYZUS), a margin account is set up. A forex margin account is very similar to an equities margin account - the investor is taking a short-term loan from the broker. The loan is equal to the amount of leverage the investor is taking on.
Before the investor can place a trade, he or she must first deposit money into the margin account. The amount that needs to be deposited depends on the margin percentage that is agreed upon between the investor and the broker. For accounts that will be trading in 100,000 currency units or more, the margin percentage is usually either 1% or 2%. So, for an investor who wants to trade $100,000, a 1% margin would mean that $1,000 needs to be deposited into the account. The remaining 99% is provided by the broker. No interest is paid directly on this borrowed amount, but if the investor does not close his or her position before the delivery date, it will have to be rolled over, and interest (Swap) may be charged depending on the investor's position (long or short) and the short-term interest rates of the underlying currencies.
In a margin account, the broker uses the $5,000 as security. If the investor's position worsens and his or her losses approach $4,000 (20% trade-able margin) , the broker may initiate a margin call. the broker will usually instruct the investor to either deposit more money into the account or to close out the position to limit the risk to both parties.
And when the positions worsens to $4,500(10% trade-able margin) the broker will force to close all the positions When this occurs, the account went burst and initial deposit will fall to <10% or <$500 and likely to remain small balance in account. The broker's platform and back office has a system to safeguard investors and broker in this case. There won't be any negative equities in this case.
