We require equal and respectful treatment of all members, both old and new, male and female, etc. We are anti-censorship and believe in the free exchange of ideas so long as such exchanges do not constitute misconduct. We believe in balanced moderation; strong in cases that necessitate it but restrained wherever possible in order to achieve the minimum degree of 'moderation' necessary to maintain a healthy community. We also believe in the absolute necessity of playing a strong, visible role in the forum and contributing helpful words and positive vibes.
Every content post of any kind including content edits is reviewed by moderators, so we always have our finger on the pulse. Our desire is that we are not forced to intervene and that members don't let the anonymous nature of the internet bring out the worst in them but rather pick up on the opportunities to add to, and receive from, a pleasant and 'happening' community.
Commercially motivated members are welcome and encouraged to participate across all site features but are strongly cautioned that their exchanges in public venues like non-commercial forums and other members' social feeds must not refer to promotional material or be otherwise promotional in nature.
No Spam, Advertising, Promoting in public venues like non-commercial forums
Under CERTAIN CONDITIONS you may post commercial or promotional posts but ONLY to the commercial forum(s). Under no circumstances may you post commercial or promotional posts to any non-commercial venue like forums, articles and comments, etc. Please be respectful and do not spam the site with links to your site or products in ways not allowed. It is understood you may believe your products are something everyone should see, and indeed it may be true. However, if everyone was allowed to post commercial content the site would become unusable. The best way to promote is to become a respected and active member of the community and take advantage of the numerous promotional tools available.
- ALL SITE LOCATIONS: You may not use any area of the site including your public social wall and profile to link to resources unrelated to the site theme simply for the purpose of SEO related link schemes and marketing. You will be quickly banned for this without warning.
- Social profile and wall: In general, you may update your own profile and social wall as you see fit, however it must be within reason and must be within the guidelines above referring to all site locations.
- Forum Signatures: Signature links are absolutely not allowed, however, you may include up to 3 non-link, text-only url's after you have been a member for 30 days and made at least 15 legitimate posts. The idea here is that you must be a participating member of the community to include any sort of promotional content in your signature. Besides link rules, your signature must not be overly large or 'obnoxious'.
- Trading Systems account page(s): Several places in a Trading Systems account may be promotional in nature, so long as it within reason and does not violate general site rules. Each Trading Systems account has commercial options that can define it is a commercial product along with a website field. If an account is defined as commercial, not only will the web address be visible but a purchase link will appear at the top using the web address as a link. Also, you may include promotional content in the account description.
- Commercial forums: commercial forums are forums specifically set aside for commercial-oriented posts, whether that be product promotions or news and analysis from other websites and companies. There are specific rules for this type of content, please read immediately below in the next section.
Please note you will definitely be suspended and/or banned for repeated abuses, and you may be immediately banned without warning depending on the nature of the offense.
No spam in commercial forums
Commercial forums are not an open spamming venue. Non-forex related content will be removed and the poster suspended or banned. Forex related commercial posts must adhere to certain criteria as well. They must be meaninful, legitimate, not scams, not redundant, etc. An example of an acceptable commercial post in the commercial forum is a post to let users know about a new forex brokerage promotion. An example of an unacceptable post in a commercial forum is a post giving users your affiliate link, or creating multiple topics for each new company promotion, or a second post about your company and products (one is enough), or a post advertising a scam product such as one making ridiculous and/or untruthful claims. Do not create multiple topics just to increase your exposure. For instance, if you post a daily market analysis article, post everyday to the same topic/thread.
Anything posted to commercial forums must be well formatted. For instance, copying and pasting something from a Word document that ends up with very poor formatting will be removed. Similarly, posting something with bb tags like [...] that were meant for use in other forums but do not format correctly in the Razor forum, will be removed.
Be Mature, demonstrate Respect, Tolerance, Equality
We demand equal and respectful treatment of all members. Abusive, defamatory language is not tolerated. We don't expect everyone to agree but we expect everyone to afford due respect. This is an adults only forum, and new members are not considered somehow inferior in any way. Experienced forum members are not necessarily better or more experienced traders than new forum members.
Obviously, no illegal content including copyright infringment.
Do not post the same question or post in multiple forums.
Please consider and respect the wishes of the original topic creator of a forum.
These are general rules and are flexibly applied. Do not attempt to read between the lines and circumvent the general spirit of the rules. Such activity is the same as non-compliance and will be treated as such.
The primary goal when building Razor Trading Systems was maximum precision and transparency. Razor Trading Systems reconstructs historical account equity using a large high-fidelity historical rate warehouse together with trade records, sophisticated algorithms and processes, and other essential data. History-based metrics such as 'Drawdown' and equity graphs are precision-calculated by iterating through each moment for the life of the account, thus metrics are calculated reliably even for time periods before the account was added to Razor Trading Systems.
Calculating balance for any point in the past is a trivial affair as only closed trades are considered. Account equity considers the value of open trades, thus calculating it throughout history is more complex. Most systems today calculate historical statistics using closed trades alone. For example, the ‘Drawdown’ metric in a Metatrader 4 account statement is based entirely on closed trades. Open profits and losses are completely hidden. Some systems do attempt to address the issue of historical equity-based metrics but use solutions based on oversimplified, unreliable methodologies and data.
Foreign exchange rates are decentralized which means there is no single authoritative price for a given instrument at a particular point in time. Thousands of different price feeds exist and it is not feasible for brokers to retain and distribute historical tick data due to the enormous storage and bandwidth requirements. The rate variations between feeds can lead to statistical discrepencies, however these are nearly always negligible.
There does exist potential broker and server specific configuration issues that can produce statistical errors. If you feel you are the victim of one of these, or notice someone that is, please contact us
Equity vs. Balance
Equity represents the value of an account including open and closed positions. Balance includes only closed trades. Equity represents the true value of an account at any given point in time. In the presence of open positions balance is a historical artifact that may hide unrealized losses (or profits). When all positions are closed, equity and balance are equivalent.
Most of the statistical measures on Razor Trading Systems accounts, including all important ones, are calculated using both open and closed trades (equity). Some fields, such as 'Closed Profits' or 'Balance' are clearly stated in terms of closed trades only. Tooltips to the right of fields on Trading Systems account pages provide further details about the methodologies used per field.
Trading Account and Records Verification
Razor Trading Systems communicates directly with the broker server and therefore cannot receive false or user-manipulated information. Razor Trading Systems cannot control the authenticity of information sent by the broker server. The onus of trust therefore lies on the broker. If the broker is trustworthy, information sent by that broker is trustworthy. It has been known to occur, rarely, that some 'scam' brokers manipulate data on trading accounts for various purposes such as marketing. Due caution should be afforded when viewing statistics generated by an unfamiliar broker.
Several key metrics are expressed in terms of time weighted return, including the main graph and return metrics. Time weighted return is an algorithm applied to eliminate the misleading impact deposits and withdrawals would otherwise have on return metrics. The basic idea is that making withdrawals and deposits results in splitting the account into different periods, calculating profit within those periods, and then multiplying the periods together in order to achieve the compound return that would occur should no transfers have actually occurred. This is the best possible way to express meaningful return metrics.
Time weighted return algorithm: (note that in the event open positions traverse transfer periods they are 'marked to market' and included in profit and equity calculations.)
Investor Passwords Security
Razor Trading Systems connects to Metatrader 4 brokers using the 'investor password'. This is one of 2 passwords an account holder should receive when they initially open a trading account. The investor password allows access to the account effectively for read-only purposes. Those who access the account using the read-only password cannot place trades on the account, thus mitigating security concerns about providing this login to a service like Razor Trading Systems.
Creating Investor Passwords
If you did not receive an investor password with your trading account, you may easily create one using the master password. On your Metatrader 4 terminal, simply login using your master password and go to Tools > Options > Server tab > Click [change] and select 'change investor (read only) password'. Then enter your new password and confirm, and click OK.
Most systems today, such as a Metatrader 4 account statement, express drawdown only in terms of closed trades, so if the trade goes into a huge loss but is never closed and eventually recovers and is closed at a profit, the drawdown is hidden and never expressed - this could be referred to as 'balance drawdown' or 'closed trades
The opposite of 'closed trades dawdown' is 'equity drawdown
', where unrealized losses (and gains or draw-ups) occur regardless of whether a position is closed or open; that is, everything
that happens between the opening and closing of the position is recorded and unrealized losses are recorded as drawdown
. The main reason many systems report in
terms of closed trades drawdown is not necessarily to hide the truth from you (although sometimes that certainly can be a factor) but also because the algorithm to calculate it is extremely easy, whereas calculating true equity drawdown is extremely difficult
, requiring huge amounts of high-quality, fully-complete data and algorithms that require thousands of times more processing power than calculating closed trades, or even logging of equity.
Forex Razor uses a historical price feed
together with other configurations like time zone settings
per broker server and advanced algorithms
to calculate the equity value of an account for every moment the account exists, and then takes the largest peak-to-valley difference as the 'drawdown' figure, which in facts represents the maximal drawdown.
Forex Razor records the equity high and low for each day and reports it on the graph, thus you can easily see the full range of values the account has been 'worth' and see for yourself
the typical drawdowns that occur from various peaks to various subsequent valleys
. Note new Razor graph features: Peak-to-Valley drawdown displayed as point on graph; also, Peak and Valley of largest drawdown now displayed as points on graph - More New Trading Features and Tools Added to Forex Razor
Time weighted return
, explained above
, is an algorithm applied to remove the misleading affects of withdrawals and deposits to ensure they do not appear as large profits or losses, so the primary and most important graph displays the gain or loss in equity, both high and low for the day, as Time Weighted Equity Return High
(TWERH) and Time Weighted Equity Return Low
There is no other similar system on the web that goes so far to ensure accurate portrayal risk metrics, other systems either show closed trades drawdown or log equity every so often i.e. every 10 minutes, missing the moments in between and all time before the account was added to their system, except for a single end of day equity calculation thus missing all intraday drawdown. In
this way, it is possible to hide drawdowns to varying degrees on all systems we are aware of except ForexRazor, and we are aware of a great many statistical systems. Indeed, we have found many examples of the Razor system correctly displaying large drawdown metrics while other popular systems show very small drawdown metrics. The image
below was created to help you visualize how drawdown is measured. Professional money managers are required to report based on equity as opposed to balance, and if you are serious about your trading, you should also be interested in equity based metrics.
It may not seem fair that an unrealized draw-up can then come down and create a drawdown even where the trade has not dropped below it's initial opening point. However, keep in mind if you were investing in a fund you could get in at the top of that peak and suffer that drawdown without having been there for the benefit of the previous climb up.
Let’s look at an example: Opening account balance = $10,000 (equity $10,000, profit 0%, drawdown 0%). You place some big trades and they all go in a positive
direction. The equity on your account increases to $20,000, a 100% gain not yet realized in real money, as the trades are still open.
This $20,000 watermark is now your Equity High (EH) position and it is from here that the DD will be calculated. Now, consider you regrettably had no 'Take
Profit' or 'Trailing Stop' positions set, the high point occurring when you were absent and not in a position to close the trades. In your absence, the market
changed and started to go in the opposite direction, all the way back to $10,000 equity – a 0% gain.
This $10,000 is now your Equity Low (EL) position. Your drawdown (DD) in this example would be 50% as there was a drop from an Equity High (EH) of $20,000 to an
Equity Low (EL) $10,000. You still have no real losses on your account as the balance/equity is still $10,000, but you have missed the opportunity to take a
profit on your trades and this is reflected by a drawdown of 50%. A low drawdown % identifies one who has strategically optimized their opportunities to
maximize the potential 'Take Profit' from trades placed while risk managing their trading losses. This is the essence of successful, long-term, managed forex
trading and the guiding principle of the Forex Razor Social Trading network.
MT4 and ForexRazor.com
We pride ourselves in taking a decidedly different stance regarding drawdown than how it is computed in MT4, insofar as we include open trade drawdown in determining maximal drawdown.
Accounting for open trade drawdown is an essential step towards understanding the true drawdown picture. If a trade analysis system ignores it, it is creating a distortion of the actual drawdown. There are far too many systems and traders out there who have had massive open trade drawdowns, and, if they are lucky enough to close these positions in profit, they think they have had no drawdown at all.
We want traders to understand that systems with large open trade drawdowns that eventually close in profit are not without risk - and eventually blow up. Instead, we want traders and clients to understand risk in its truest form, which includes open, intraday drawdown, so that trades can be conducted with more caution and with safer money management techniques, and so everyone has a better chance in preserving their capital.
Razor Calendar is the first global economic calendar to employ it's own proprietary http 'push' technology to push data to the user browser immediately after data becomes available. This technology is superior to the traditional web request architecture where users either request complete web pages or simple AJAX schemes where portions of a page are updated asynchronously based on user events or timers. One advantage of employing this technology is that Razor Calendar is able to deliver data faster and more efficiently than other sources on the web. Razor Calendar was built with the latency and accuracy sensitive trader in mind so the data is right in front of you, fast and easy to digest.
The Razor calendar is always streaming so you don't need to refresh it, in fact doing so will only cause unnecessary delays. When viewing the calendar, a new data window will open approximately 30 seconds before a scheduled data release and the data records will auto-update to the window for maximum readability. You may suppress this popup window using the 'Streaming Update Window' button and allow data only to update via the main calendar grid. Although the Razor calendar is designed to work with all recent versions of the 5 major internet browsers, we recommend Firefox as the optimal choice.
Razor Economic Impact Analyzer provides traders with a fast and reliable method to research the impact a given economic event had on the market for each historical instance of the event. This allows traders to make more informed trading decisions, such as when to close a position and stay out of the market due to the impending risk of large rate fluctuations, or conversely to get into the market at just the right time using surgical precision to capitalize on the inevitable fluctuations or 'spikes' as they have been so labeled.
Razor Economic Impact Charts offers a massive historical database of economic events along with historical pricing giving you research access rivaled only by expensive service subscriptions. You can quickly find the market event you wish to research by selecting the currency associated with the event and then selecting the event name. You may also change the currency pair to research how this event impacted different currency pairs. Each economic event may have occurred at or around the same time of other events and it may be important to consider these as well. Below the price chart you will find a list of all events that occurred at or about the time of the primary event you are researching.
When you first register a Razor account, you should setup permissions on your social profile and related assets such as photos based on your desires and objectives. By default, your profile is set to public, meaning your profile, photos etc. are visible to Razor members and general internet users, however only Razor friends can send you private messages. You may edit any of your privacy settings like who can message you, and make it so your profile is private, shared only with Razor friends, or hidden from listings but still visible to anyone. You may also edit further detailed permissions on features such as your wall functions, photo albums, and who can send you messages.
To edit your social privacy settings dropdown your [My Account] tab and select [Settings].
Community reputation can be built in several ways and facilitates superior communication within the community by improving trust.
There is no single measure in an anonymous venue like the web that properly conveys social and trading performance and reliability. This is why Razor embraces a mult-faceted approach and eliminates counter-productive systems that bestow greater abilities or permissions such as vouching on certain members based on their community performance.
- Member 'Like': Click the 'Like' button on a member's social profile or forum post information section to 'vote' for that member. By doing this, you are simply saying you appreciate this member. You may 'like' anyone you wish, and view who else and how many have 'liked' them.
- Points: A simple count of points assigned to the member for making forum posts and other Razor interactive content. This gives you an idea of how active they are relative to the amount of time they have been a Razor member.
- Best Answers: When someone asks a question in the forum, they can mark one answer as the 'best answer'. Best answers are tracked and credited to those who submitted the best answer, thus this measure can give you some general idea of how helpful and/or authoritative a member is.
- Trading Systems Accounts and Trading Prowess: The best way to demonstrate trading ability is add your trading account(s) and make the public or viewable by friends. This goes a long way to telling the real tale of trading ability. Of course, it is good to keep in mind if a member chooses to do so they can cherry pick only their best accounts to display.
By viewing all these measures, you stand a better chance at gleaning some look at the fitness of a certain member. By no means is it perfect, but then no web system is.
Anyone caught abusing any of these systems will be suspended or banned.
- 1 point Per forum post
- 20 points Per forum post marked as 'best answer'
- 1 point Per group created
- 5 points Per Trading Systems account added
- 5 points Per Suggested review
- 5 points Per review rating
Though the feeds and prices between demo and live may look identical, demo accounts differ in terms of execution speed and slippage.
Demo accounts have unlimited instant liquidity with zero slippage, whereas live orders can take longer to process, incurring extra slippage.
There are systems out there, particularly scalpers, which depend on the material difference between demo and live accounts. These scalpers are exploiting things which are purely an artefact of demo feeds and prices, and they cannot work profitably on live accounts.
Since most of these scalpers enter and exit their trades in less than 2 minutes, we have created a rule that disqualifies 'winners' if the majority of their winning trade activity is executed in less than 2 minutes.
Please note, if only some of your trades are opened and closed in less than 2 minutes, it is perfectly fine and reasonable; the rule is designed to filter out the systems that depend on the majority of trades opened and closed in less than 2 minutes for the sake of exploiting the material difference between demo and live price feeds.
From time to time we host a contest that places importance on Drawdown nearly as much as Return. The winning criteria will not be Maximum Equity % Return
, but instead Highest Equity : Drawdown Ratio
What Is This?
It is basically the Equity Percentage Return divided by half the Drawdown Percentage.
(100 + Equity High %) / (100 + (0.5 * Drawdown %))
Suppose you have 32% return and 20% draw down: (100+32)/(100+(0.5*20)) = 1.2 ratio
Suppose you have 75% return and 50% draw down: (100+75)/(100+(0.5*50)) = 1.4 ratio
Notice that equity return is still favored in the calculation. It still has double the weight of drawdown. It’s just that now drawdown percent is something one needs to be more mindful of – not just as a level to be avoided, but as a level to keep as low as possible while maximizing gain.
Why Have This Ratio?
Sometimes having contests based only on maximum equity % return rewards the gambler. When you have 1000+ contestants competing, there is bound to be those who strike it lucky, place trades in the right direction with high leverage.
We believe that in the real world, star traders are those who can achieve excellent returns with low draw down. If you can achieve an excellent return with low draw down, it is more probable that you have an edge in your trading system and money management that does not rely as much on luck and leverage.