Developer of Dollar Trader
Program(s) Developed: Dollar Trader
Interview Date: August, 2005
Interviewed by John F. Gallwas, Founder of Striker Securities, Inc.
An interview with Dave Fox, developer of Dollar Trader, a currency trading system/advisory, which is designed to trade currencies in either the cash or futures markets. Mr. Fox is a registered CTA (NFA 90416) with offices in Florida and Maine, and we found him at the latter for this interview.
John Gallwas: The first thing our readers will want is a description of your "system/advisory" service.
David Fox: The software for Dollar Trader is written in Easy Language code for all versions of TradeStation ™ . The system is a closed system, meaning that the algorithms are not disclosed and the trading signals are generated from daily data. However, the logic, which comes with the system, is based on a variation of both the Parabolic indicator and Average Modified Moving Averages (AMMA).
When I first offered this program to traders, due to of the nature of currency trading, I realized that there were times when it would be helpful to provide an advisory to my customers regarding the nature of a system signal. For instance, if the SF signals a change in direction, we would generally advise to wait for confirmation by the Euro. Trading futures contracts, occasionally there are 'close calls' when an indicator may have changed direction by a very small margin and reference to the cash market might be suggested. The e-mail advisory is free for the first year and for a nominal charge thereafter. It is furnished to system assist brokers on a continuing basis.
John Gallwas: What events and/or circumstances led you register with the CFTC as a CTA in 1984 and the subsequent development of the Dollar Trader system/advisory launched in 1991?
David Fox: When I started the research project I registered as a CTA in order to show that I was willing to hold myself to the standards of CFTC. It was not until 1991 that I had completed the development and testing phases and started offering Dollar Trader to traders. That same year, I observed that the system results were commensurate with the Top Ten published by Futures Truth Magazine ™ so I placed the system with them for tracking. The system topped their list in its first year being tracked and in their third issue of 2005, Dollar Trader is in the "Top Ten Since Release Date" as well as the "Top Ten Multi-Market Systems" categories
John Gallwas: According to Striker's actual trading record, since November 2002, our customers have enjoyed a 100% net return on their $30,000 investment. Can you tell us the reasons why your service has been successful, when many other currency systems have not been profitable?
David Fox: First, let me say that I believe that intermediate to long term trading has a better chance of success. In addition, because the Dollar Trader system is based on my versions of two major indicators Parabolic and an AMMA, the system has been successful in catching good portions of the major currency trends since inception. The system has had its drawdowns as well and, of course, we all know that past performance may not be an indication of the future results. I can say though, that its still trading my money.
John Gallwas: What are the pros & cons between using your service to trade the Forex (spot) vs. the futures currency markets?
David Fox: The results should be similar if one trades the Forex with lots of each currency about the same size as futures contracts. It might work out well to defer some entries until there is confirmation on the system by both markets.
This matter would be dealt with by our advisory.
John Gallwas: What should the trader, who has no currency trading experience, know about currency trading in general and your system in particular before starting to trade?
David Fox: Currency market tends to be good trending markets, but it takes patience and discipline to stay with the trend. As a result, in my view, the best combination for the new trader is a good system (like mine), coupled with a broker assist program like Striker's. This combination allows the system to be operated as it was designed by the developer, substantially improving the odds for success.
John Gallwas: Do you trade with your systems personally and, if so, do you use a broker assist programs or do you self-direct?
David Fox: Yes I trade my system by using a broker assist program!
John Gallwas: Do you have anything in your "What's New" department and are there any promotions you would like our readers to know about at this time?
David Fox: In the third quarter of 2004 our system sustained a series of losses from trades that aborted quickly. After exhaustive study and testing we have devised several routines to exit such trades sooner without missing those that recover and go on. Our revised Easy Language code will be distributed to brokers and users in the near future. Futures Truth Magazine ™ has plans to rate systems trading with Forex data as well as futures in the future, which will give the trader an additional tool to evaluate currency systems.
This interview is for informational purposes only and is not intended to be
a solicitation of any kind. Trade only with risk capital. The risk of
trading can be substantial and each investor and/or trader must consider
whether trading systems are a suitable investment.
There is a risk of loss in trading. It is the nature of commodity and securities trading that where there is the opportunity for profit, there is also the risk of loss. Commodity trading involves a certain degree of risk, and may not be suitable for all investors. Derivative transactions, including futures, are complex and carry the risk of substantial losses. Past performance is not necessarily indicative of future results. Please read additional risk matters on our web site, www.striker.com. It is important you understand all the risks involved with trading, and you should only trade with risk capital. This communication is intended for the sole use of the intended recipient.
About this report The information and links on this website are for informational purposes. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). Striker is registered with the Commodity Futures Trading Commission ("CFTC"), and was formerly registered with the Securities Exchange Commission ("SEC"). Additionally, Striker is a former member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure.
The trading performance cited throughout our web site is based on actual trading history, unless otherwise noted. The starting account balance is based on the system developer recommendation. Striker tracks actual performance by recording and maintaining each trade ticket for each system generated. The performance information assumes that no additions or withdrawals have been made. The rate of return for all systems disclosed in the Striker Report is cumulative from the day the system actually started trading at Striker. We maintain a "life" track for all 3rd party systems. We do not necessarily base our records on any particular client account. No one particular customer has achieved these results. The percentage returns reflect inclusion of commissions and fees.The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not a client takes all signals for a system) in the specified system and money management techniques.
Striker is a revolutionary concept in action: an international, professional team of brokers dedicated to trading only for clients. It bears repeating: unlike most other brokers, Striker does NOT trade futures for itself or any of its employees. This policy has been in place from the start in order to guarantee that our entire focus remains on the interests of our clientele. Striker believes that when brokers are allowed to trade for themselves (or have in-house trading practices) there is a strong potential for conflict of interest, as the broker may place more importance on his own trading activities (or that of his firm's) than on those of his clients. Finally, Striker has no financial ties to system developers, so there no bias or pressure on how we report the actual trading results posted in our client section. This section is designed specifically for Striker's clients, so they may audit their results on a daily, weekly, monthly, or annual basis.