Elite E Services January 2007 Newsletter

Intelligence disclaimer: Reading and thinking on an intelligent level carries a high level of risk, and may not be suitable for all humans. A high degree of intelligence can work against you as well as for you. Before deciding to read this article you should carefully consider your objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial knowledge and therefore you should not invest time that you cannot afford to lose. You should be aware of all the risks associated with intelligence, and seek advice from an independent advisor if you have any doubts.
Forex Disclaimer: WARNING! Foreign exchange is risky! There is a very high probability that you could lose some or all of your investment. Therefore, forex should be taken with a grain of salt, by only the elite, sophistocated investor. See Risk Disclosure

2007 Roars in

Announcing Global FX Radio www.globalfxradio.com

Global FX Remote Group, LLC is proud to announce the launching of Global FX Radio, www.globalfxradio.com

Global FX Radio is meant for traders who trade the Spot FX market. It is hosted by Andrew Spanton, the Managing partner of Global FX Remote Group, LLC. Mr Spanton has over 15 years trading experience and will be providing insightful High Energy market commentary from both a Macro Economic and Technical approach.

Breaking Economics news in real time, technical analysis, price action, market commentary, education material, special guests and much much more.

If you trade FOREX you will never need another source for market news and play by play. Given his experience in training traders for the past 4 years, Mr. Spanton has a keen ability to make complicated issues simple.

The show is FREE and will air Live Sundays from 5 to 6pm EST for a review of the week ahead as well as the market open. Weekdays from 4 to 5am EST, 8am to 10:15am EST and a market wrap up from 4pm to 5pm EST.

MAD FOREX will be from 4pm to 4:30pm EST, where callers can talk to Mr. Spanton asking any questions related to trading.

InvestorFlix

This is the website that all the trading gurus have been hiding from you because they know if you could get their courses for free... Why would you pay?

In fact, just imagine how much you could save if you could borrow all the trading courses you could ever want, just as easily as if you were going to your local library.

InvestorFLIX is a video rental service where you pay a flat rental fee and get as many movies as you can handle (or have time for ;-)) sent to your house - even if you live internationally.

FX Tech Support and Forex Training Videos live at Revver

We want to make a series of training videos for technical computer support and forex programming.

Elite E Services : A Virtual Corporation

Elite E Services is a post-industrial virtual corporation. Traditional industrial corporations measure their assets in square footage (either of offices or factories) whereas ours can be measured by our NTFS file structure and our processing power. Every transaction we make is electronic. If someone sends a fax to us, it is delivered to our email via efax service. From online banking to document management, communications, customer support, technical development, business administration, and all other business services, are done online. It no longer matters where people are physically. Right now I am in South Carolina although we have never had any client from South Carolina. Our corporate offices are in Nevada and we have a Vonage VOIP phone number with a 646 area code (Wall St.).

Companies 100 times our size do not have 1 computer which is faster (calculated in Gflops) than ours. If you search forex managed accounts on google we outrank companies that are 100 times our size.

What is online trading?

Today's markets are electronic, decentralized, and extremely liquid. Anyone with a computer, internet connection, and small amount of investment capital (as little as $100 US Dollars) can start investing for themselves using sofware freely available. It is well known that you can do this, but what is less known is that you can develop an automated trading strategy and sell it for millions. There is no longer an advantage to being in a high-profile Wall Street office. In fact, if you develop a profitable strategy, Wall Street traders may pay you to use it for themselves. After all, they are concerned with the strategy results, not who made it or how they made it. Their only concern is 'does it work?' and 'how well does it work' ?

Do not confuse online forex trading with actual currency conversions done in airports and banks. This is a type of trading like day-trading stocks. You open a brokerage account, trade, and you have a profit or loss. There are no requirements other than the account minimum which is anywhere between $100 and $1,000.

What is the forex trading industry?

Before exploring where we are today, it is important to understand where we have been and how we came to the point we are now.

Development and History of Forex Market – If you have ever traveled overseas, or invested in another country, you have been exposed to foreign exchange trading. The foreign exchange market, referred to as forex or fx, has traditionally been reserved for large institutions and banks. Recently, a trend in online forex trading is bringing it to the retail investor.

The modern foreign exchange market (fx or forex) began to develop in 1973. However, money has been around in one form or another since the time of Pharaohs. The Babylonians are credited with the first use of paper bills and receipts, but Middle Eastern moneychangers were the first currency traders to exchange coins from one culture to another. During the middle ages, the need for another form of currency besides coins emerged as the method of choice. These paper bills represented transferable third-party payments of funds, making foreign currency exchange trading much easier for merchants and traders and causing these regional economies to flourish.

From the infantile stages of forex during the Middle Ages to WWI, the forex markets were relatively stable and without much speculative activity. After WWI, the forex markets became very volatile and speculative activity increased tenfold. Speculation in the forex market was not looked on as favorable by most institutions and the public in general. The Great Depression and the removal of the gold standard in 1931 created a serious lull in forex market activity. From 1931 until 1973, the forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the forex markets during these times was little, if any.

Date	Event
1944	Bretton Woods Accord is established to help stabilize the global economy after World War II
1971	Smithsonian Agreement established to allow for greater fluctuation band for currencies
1972	European Joint Float established as the European community tried to move away from its dependency on the U.S. dollar
1973	Smithsonian Agreement and European Joint Float failed and signified the official switch to a free-floating system
1978	Free-floating system officially mandated by the IMF
1993	European Monetary System fails making way for a world-wide free-floating system
1997	Global Forex Trading begins offering services to customers as one of the first in the U.S.
2001	MetaQuotes offers trading software that allows traders to develop automated trading systems

The Bretton Woods Accord

The first major transformation, the Bretton Woods Accord, occurred near the end of World War II. The United States, Great Britain and France met at the United Nations Monetary and Financial Conference in Bretton Woods, N.H., to design a new global economic direction. The location was chosen because, at the time, the U.S. was the only country unscathed by war. Most of the major European countries were in shambles. Up until WWII, the British pound was the major currency by which most currencies were compared, but that changed when the Nazi campaign against Britain included a major counterfeiting effort against its currency. In fact, WWII vaulted the U.S. dollar, from a failed currency after the stock market crash of 1929 to benchmark currency, by which most other international currencies would become compared and valued. The Bretton Woods Accord was established to create a stable environment, leading to an onslaught of other global economies restoring themselves and their currencies. In fact, the Brettonn Woods Accord established the pegging of currencies and the International Monetary Fund (IMF) in hopes of stabilizing the global economic situation.

Major currencies were now pegged to the U.S. dollar, fluctuating by one percent on either side of the set standard against the dollar. When a currency's exchange rate would approach the limit on either side of this standard, the respective central bank would intervene to bring the exchange rate back into the accepted range. At the same time, the U.S. dollar was pegged to gold at a price of $35 per ounce, further bringing stability to other currencies and world forex situation.

The Bretton Woods Accord lasted until 1971. Ultimately, it failed, but it did accomplish what its charter set out to do, which was to reestablish economic stability in Europe and Japan. The major reason it failed was because it continued to use a set standard to fix a currency against a smaller market, such as gold.

The Beginning of the free-floating system

After the Bretton Woods Accord came the Smithsonian Agreement in December of 1971. This agreement was similar to the Bretton Woods Accord, but allowed for a greater fluctuation band for the currencies. In 1972, the European community tried to move away from its dependency on the dollar. The European Joint Float was established by West Germany, France, Italy, the Netherlands, Belgium and Luxemburg. The agreement was similar to the Bretton Woods Accord, but allowed a greater range of fluctuation in the currency values.

Both agreements suffered mistakes similar to the Bretton Woods Accord and, in 1973, collapsed. The collapses signified the official switch to the free-floating system. This occurred by default, as there were no new agreements to take their place. Governments were now free to peg their currencies, semi-peg or allow them to freely float. In 1978, the free-floating system was officially mandated.

In a final effort to gain independence from the dollar, Europe created the European Monetary System in July of 1978. Like the previous agreements, it failed in 1993, but what followed was an evolution from a combination of the EMS and the Bretton Woods Accord.

Today, the major currencies, such as the U.S. dollar, Euro, British pound, Swiss franc and the Japanese yen, move independently from other currencies. The currencies are traded by anyone who wishes, including an influx of speculation by banks, hedge funds, brokerage houses and individuals. Only on occasion do some of the central banks intervene to move or attempt to move currencies to their desired levels. The underlying factor that drives today's forex markets, however, is supply and demand. The free-floating system is ideal for today's forex markets. The supply and demand of currencies are driven by three factors, including interest rates and interest rate differentials, commodities and global trade. The forex market is the prime market of the world by all which all others can be considered derivatives (like futures and options).

Software Platforms

There are several software platforms that allow the development of an automated trading strategy. The one we will use as the example is Meta Trader.

This is a free demo. You can install it as many times as you want. Also you can open multiple demo accounts (in case you lose all your money in the first one!)

Sample Expert Advisors

Speed is a function of bars back and looks for mini breakouts. You can tweak the settings in the input area, which will determine how 'fast' the strategy trades and how 'large' the breakout needs to be. For example if the last 10 bars have an average range of 10 (High - Low) and the last bar closed with a range of greater than 20, it will buy with a take profit of 5 pips. The numbers can be changed and I have seen this make money in certain markets and also lose in others. You will know real fast!! But if you get to know the system and tweak it for your broker, account settings, style, and cross, you can make money.

http://www.lightpatch.com/forex/mt_yahoo/ This is an FTP archive of thousands of strategies that have been co-developed by a yahoo group. The group still exists but for awhile it was overriden with SPAM. However there still exists a large development community of Meta Trader developers both professionally and hobby.

Functionality

The core of this business is the development and trading of automated strategies. This can be done in a number of varying ways but the concept is the same: you program a rule based strategy that performs some calculations, you test it, and then you trade it.

There are some other functions in support of the development of strategies such as administration and backoffice. Backoffice is the accounting and other analysis done post-trade for business purposes. For example clients will want to make deposits and withdrawls from their trading accounts, funds need to be cleared and usually some commissions to be paid to Introducing Brokers or other referring parties. Functions can be divided into several subcategories:

This is an organizational structure and by no means a detailed explanation of each of the functions. You can participate in some or all of the functions. Even if you are the expert in Fortran, you may want to trade your own strategy for fun. Since 100% of the business is online, the entire business cycle can be described in terms of I.T.

Using a number of tools for online collaboration, there is no reason that we should be required to physically meet. In fact, EES has many clients and partners who we have never met.

Post Industrial economy

1. People that exchange their physical labor for money (hard labor and trade)
2. People that exchange their products for money (manufacturing, the traditional bricks and morter business of the industrial revolution post 1850)
3. People that exchange knowledge for money (consulting, much of I.T.)
4. People that exchange money for money (bankers, forex traders)

What do bankers do? Without getting too philosophical, think about the dynamics of trading foreign exchange. You open the account, write software, your account grows, you withdraw funds and spend it, what has really happened?

Automated Forex Trading strategies are the direct translation of knowledge, code, and analytics into money. If you develop traditional software you need to distribute it, sell it, deal with many issues. True, there are some logistic functions in forex business, but only in forex trading is your success exactly rewarded with money. Secondly, we choose to particpate with clients for posterity, it is not necessary. If a strategy is winning, you just need to make sure it is trading and that's it.

The internet is designed that if 1 node goes down, traffic will find another route. This kind of decentralization and flexibility not only allows for the development of Virtual Corporations, the theme is similar. There is no 'head quarter' offices which delegate responsibilities to lower in the chain command workers. The forex market is the appropriate market to trade because unlike other markets, such as equities which trade on the NYSE New York Stock Exchange, there is no 'exchange' of forex. There are a collection of counterparties who are loosely organized through various 'networks' defined by their technology NOT by their particpants. One such market is Currenex, an interbank market. Another is EBS, a popular banking network that many of you may have used while wiring funds overseas.

Also appropriate for a post industrial operation is the fact that the forex market is unlimited in terms of profits. In traditional markets businesses quickly saturate market demand, as there are only so many buyers to sell your product to. When developing forex trading strategies, the number of strategies you can create is almost infinite. Don't forget, as you are implementing your strategies, so are thousands of other traders, and the world is changing.

Finally, forex is deregulated in all countries. There are rules and regulations in the USA that are applicable to any type of investment from the public, that means when customers and money are involved there are regulators that have something to say. However, do not confuse that with market regulation. The NFA, FSA, and CFTC act as consumer watch dogs and protect against criminals, more than they regulate markets. There are no laws pertaining to the actual trading of foreign exchange by any government, anywhere in the world. It is the wild west of financial trading.

What about global warming? When considering working with Elite E Services or an investment in the forex market, consider the side effects of your investment, such as the fact that this company and the forex market is completely environmentally safe. We produce no toxic chemicals and do not contribute to the harm of living creatures or effect the biological environment negatively. This means we are buddhist friendly (for example), and respect the natural order of the universe.

“It is the Advisor's philosophy that although often considered politically incorrect, these and similar industries and products...will continue to experience significant capital appreciation during good and bad markets. The Advisor considers these industries to be nearly ‘recession-proof.’” - Vice Fund Prospectus, July 31, 2006, page 2.

Understanding where forex has come from, it really is the anomaly that the floating point exchange rate system exists at all! And we can profit by it, greatly, without regulation or restriction. I know, it seems to good to be true. And with that in mind, we will end this with a link to a REAL LIVE account statement.

Development Group - Google Groups

EES Forex Developers is group of people that develop FOREX strategies on several trade platforms including specialized trading platforms

Hot Sites

The Service

Managing tasks is generally not a fun way to spend your time. We created Remember The Milk so that you no longer have to write your to-do lists on sticky notes, whiteboards, random scraps of paper, or the back of your hand. Remember The Milk makes managing tasks an enjoyable experience.

We began work on Remember The Milk in August 2004. What started as a simple idea soon became a huge web application with every feature imaginable (there's a reason why this took more than a year to finish!). We launched in October 2005

For Developers

"Our job is to complement the Skype product by driving and promoting the Skype platform. The end result is compelling partner innovations that delight the end users, and gives them reasons to Do More with Skype and partner products"

Skype's API allows developers to create applications that work together with Skype. Its free to use (as in beer) with commercial and non-commercial applications. Skype API is available on Windows, Mac OS X, Linux. New to Skype API? Start here.

The Google Gadgets API is a simple way to create little applications that run on multiple sites, including Google Personalized Homepage, Google Desktop, Google Page Creator, and thousands of sites all over the web that use Google Gadgets For Your Page. Google Gadgets reach tens of millions of users every week; even better, Google provides free hosting, free bandwidth and an easy way to submit your gadgets to the official directory, where users from all around the world come to find them.

Gadgets are so easy to write that you can create your first one in 5 minutes and even turn existing web content into a gadget. There is no special signup, and nothing you need to download. Get started today!

Entertainment

This newsletter can be accessed in its entirety from this link:
http://ees.net.nz/info/ees-newsletter/ees-01-2007-newsletter.htm

Risk Disclosure
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

We have contacted you because you have at some point corresponded with Elite E Services or signed up for our newsletter. This message is an informational newsletter, not a commercial advertisement. It is compliant with all federal and state laws regarding e-mail messages including the California Business and Professionals Code, . We have provided (mailto:info@ees.net.nz?subject=REMOVE) e-mail contact so you can be deleted from our mailing list. Elite E Services USA mailing address is Po Box 1436 Swansea, SC - Our NZ office address is 80 Lichfield Street, Christchurch, New Zealand, and our website address is www.ees.net.nz ees.net.nz