U.S. Fed Cuts Key Rate to 1%

The U.S. Federal Reserve cut it's benchmark rate today sending the markets into a frenzy. This now puts the U.S. rate at 1%, just 1/2 percent less than Japan's 0.5%. It will be interesting to watch and see if this slows down the bullish Dollar trend we have been seeing since July of this year. This move comes after news this week that U.S. consumer confidence is at a historic low and the economy slowed down the most since the 2001 recession.

Webinar Scheduled for Monday

A new client webinar is scheduled to be held on Monday at 4:00pm. If you would like to attend please visit the Echo FX Managed Account Program webinar invite page.

Updated Backtest Performance Summary

I have been working hard to finalize a six month backtest performance summary for each of the three Trade Programs. Here are the backtest results from March 15 - September 15, 2008.

Medium Risk
Medium-High Risk
High Risk

How to learn Forex - Academy of Forex

After an enormous amount of time and effort, we proudly present the education arm of Echo FX - The Academy of Forex (www.academyofforex.com). The Academy was started to give our clients the opportunity to learn how to trade Forex and trade on their own if they so desire. We currently are running three separate courses including 'Forex 101 - The Forex Beginner', 'Forex Trading System Essentials', and 'Automated Forex Trading'. We hope you will all find the service useful and worthwhile.

Managed Forex Account Webinar

Our webinar for Tuesday has filled up. We are sorry to those who had hoped to participate. We will however be holding a second webinar this week - Thursday, October 16th, 2008 at 8:00pm MST - If you would like to join just fill out the invitation request here.

Managed Forex Account Webinar on Tuesday

Echo FX will be holding a Managed Forex Account information webinar Tuesday, October 14th, 2008 at 4:00PM MST (6:00PM EST). You will need an invitation and weblink to join. To participate, fill out the request form(click here) and the necessary instructions will be emailed to you prior to the meeting start time.

Echo FX Forex Articles

As many of you know, we currently publish Forex training articles online. We provide a copy of the articles prior to submission on our website. You can find the articles here.

How the Financial Mess affects our Trading

Many are asking for an analysis into how the current financial mess affects our trading strategies. Here is a breakdown:

- The Frankfurt is slightly affected by this market in that the strategy has concrete entry parameters based on volatility. If there is too much movement the system does not take an entry that day. Volatility over the last month has been at historic levels and because of that there have been more days than usual that were not traded. This affects overall performance of the strategy and increases the risk on those days that we do take a trade.

- The Mid-Range Trend Finder is not really affected by market turmoil. The strategy uses longer time frames where drastic short term movements do not heavily influence the signals. This strategy is by far the safest of our three. If economic conditions worsen and we decide to stop trading The Frankfurt and our Range based system (see below) we WILL continue to trade this strategy.

Credit Crisis Deepens

The credit crisis is deepening as it is becoming clear the economic problems are not confined to the U.S. The news drastically affected prices over the weekend and continues to do so even before the open of the European markets today. For example, since the Asian markets opened, the AUD/JPY has dropped 450 pips. To put that into perspective, only a hand full of weeks all year have seen 450 pips worth of drop or climb from the AUD/JPY and we have seen that in a matter of hours. The case is similar with many other pairs which more than likely means we are in for an amazing day.