Modern Day Alchemy, LLC.

Understanding the Science behind the Alchemy

Overview

The purpose of this page is to help you fully understand what you're getting into and, more importantly, the reasons why you should get started as soon as possible. We also want to share with you why we are so confident and willing to make such recommendations to you so that you can better understand the logic and analyses behind the alchemy.

First things first! We ask that you take a "trust but verify" approach by trusting what we are telling you as being 100% real. Take that proverbial leap of faith with us but do so with your eyes wide open. By doing so you can verify with your own eyes that this is indeed real -- and allow yourself to experience the uniqueness of Modern Day Alchemy.

We will start off by briefly giving a general explanation of our business model. We will then go into details about why it works so well. We will then proceed to the details about playing the odds because that best describes what we are really doing.

The Strategy

Our strategy is simple. Without being greedy we scrape off a few pips from the normal daily activity that takes place whenever the markets are open for business.

We do this by 1) managing risk; 2) taking only 5 pip profits; 3) diversifying by NOT putting all our eggs in the same basket; and, finally, by 4) aiming for long-term growth.

1) Managing Risk

We manage risk by using limit orders whenever possible. There are basically two types of orders: Limit orders, and Market orders. Market orders are just that. You get the market price at the time the request is made as determined by ODL Securities whose interests are in direct conflict with ours.

A Limit order is just the opposite. With a Limit order, we are placing limits on the transaction, and we dictate the price we are willing to accept the trade at. When we do this the broker is obligated to accept our conditions, or not make the trade with us. We place a Limit order on the down side called a STOP LOSS order-- which means exactly what it sounds like. We have reached our maximum RISK level for this trade and we want to STOP the LOSS. We also use a Limit order for our TAKE PROFIT. This means the broker will guarantee our profits if the market moves in our favor.

Another way we manage RISK is by setting a RISK percentage (tolerance level) which determines exactly how much profit or loss any one trade can produce for your account.

2) Our Approach

Our approach is simple. This is the fabled marathon race between the tortoise and the rabbit. We believe that slow and steady wins the race. This is why we only take a few trades each day, and each trade is only looking to make 5 pips profit. And when our trades are done for the day, regardless of the fact that the markets are open 24 hours a day, 5 days a week, we take our time, and wait until the next day before analyzing the market conditions, and playing the numbers game all over again. Keep in mind that in a market that moves 100+ pips a day, 5 pips is relatively small number, and this adds to our edge.

3) Diversification

Another way we minimize RISK is by diversifying our trades. Basically we are watching a few different markets all at the same time, and we spread our daily RISK around by playing the same numbers game in these different markets at the same time. Our business model embraces the wise precept of “Never keep all your eggs in one basket.” For this reason alone, we trade the USD/JPY, EUR/USD, EUR/JPY, and the EUR/CHF currency pairs.

4) Long-Term Growth

This could be the most important factor you should look at when making the decision to purchase your software license, and one that we believe would convince anyone, if not everyone, exactly why it PAYS to license software from Modern Day Alchemy as opposed to using other investment vehicles. First and foremost, unlike most other investment funds that buy positions and hold positions for very long periods of time (like mutual funds, etc) we buy positions and sell positions as quickly as possible (usually within the same day).

This means we are not exposed to the long-term RISK experienced with most other investment vehicles. What this means for you is simple. We do NOT lose value over time. The reason a mutual fund or other investment vehicle will lose its value over time is because it is buying a position and holding on to it through both the markets ups and downs. This explains why your account balance grows while the markets are moving up, and shrinks when the markets are moving down.

Since this is an extremely inefficient strategy, we take a much simpler approach. Instead of buying inventory and holding on to it for an extended period of time we are constantly buying our inventory at wholesale, and then selling it at retail as quickly as possible.

Because we never hold onto positions we are insulated from having the account balance go up and down with the market forces. Instead, we use those very same market forces to consistently grow the account. Our efficiency is evidenced in the fact that over time we only gain value, not lose value.

Time Is Our Greatest Ally

As stated, we never lose value over time. How is this possible you might ask? The key is very simple. When the markets are moving UP, we are buying low then selling high (quick turn-around) and when the markets are moving down, we are selling high then buying low (in and out). We do this four consecutive days a week starting on Monday, and we simply allow our software to ride the market waves up and down (which they do consistently week in and week out).

Playing The Odds

There are many types of odds-based businesses out there. Insurance companies and casinos are the first to come to mind. Insurance companies depend on the volume of people paying in... with the hopes that over time it has to pay out less. Our strategy utilizes this very same idea -- we have money coming in several times a day, with the hopes of only needing to pay out a few times a year.

Casinos on the other hand deal with cash, and so in essence they deal in numbers. They really want your business so they stay open 24 hours a day; and if you win anything they offer incentives for you to stay as long as possible and/or come back at your earliest convenience. When you win big they plaster your photo up real big and advertise as loud as possible that you just won, all the while offering you rooms, food, beverages, and stimulating entertainment to keep you there as long as humanly possible. They know that if you stay long enough, the statistics prove that they will get their money back--and usually at a rate that far exceeds what they have had to pay out. Our strategy emulates this very same quality.

A Practical Example

Imagine if you will that you and I go into business together and we buy a casino. And since we are the casino owners, we can do what we want. Let's go deal some black jack. Now as we start dealing the cards, the first question we ask you is this. Do we really care if we deal the player sitting in front of us, a patron in our casino, a blackjack? The reality of the question is this. If we deal him a blackjack, we the house are taking the loss (equate this to when our strategy takes a loss).

Now let's assume that for the next three hands we deal him back-to-back blackjacks. Now his girl is past excited, and he thinks it's the luckiest day of his life.

What do we however think as casino owners about the fact that somehow, even though we shuffled the cards multiple times after each and every hand, we still somehow managed to deal him back-to-back blackjacks? Improbable as it may sound, we MUST leave room for this possibility. But again I ask you... Do we really care that we took back-to-back losses as owners of this fine casino?

Well for the answer, let's analyze a real casino. The house inevitably pays out some really nice wins periodically; and on a daily basis they are ALWAYS paying out some amount of winnings. This is evidenced by the fact that they are constantly building more and more casinos, so they must be doing something right.

Our strategy demonstrates the validity of this approach. The reason casinos grow and get bigger and expand is because they are playing a numbers game and they have an edge. So it doesn't matter how much or how often they have to pay out, they will always collect more and more for their troubles as long as they have time on their side.

We Have The Edge

As we take trades in the market we are doing the same thing. We are playing a numbers game where we have the edge. This simply means that over time we will do better and better regardless of the number or frequency of losses we have to pay out.

Our strategy performs very well and has a clear and present edge. Over the past 9.5 years it has a record of placing winning trades over 97% of the time.

There are several reasons for this. As often stated by market traders: “Professionals manage RISK, while amateurs manage PROFITS.” Also there is one alchemical distinction that gives us what we call the ultimate edge-booster. As opposed to ALL of the live traders out there we do NOT allow human interaction with the markets.

We have small programs that run on our computers and trade the market for us. This eliminates the Human Error Factor which immediately adds to our edge as witnessed by our winning percentage. The computer looks at the chart and sees clearly what is actually on the chart; whereas the human mind will tend to see only what the human mind wants to see, which at times can be far from what the chart is actually showing.

Furthermore, when the human mind is wrong and starts to lose money emotions really come into play and this alone accounts for the lion's share of why 95% of all traders end up losing money trading the markets. They “chase” their losses. But the robots don’t do that because they don’t perceive a loss having occurred. To the robots a trade is a trade is a trade.

Retirement & Social Security

Speaking of losing money, ask yourself this. When you are ready to retire, will Social Security be there for you when you need it? According to recent projections, Social Security will run out by the year 2042 if not sooner. Instead of fixing the problem, the politicians are more interested in pointing fingers and passing blame, which is easy to do when you have a plush government backed retirement plan.

Even if Social Security is still paying out when you are eligible, will it really be enough? Have you taken a look at your retirement / mutual fund statement recently? Do you really believe that it will be there for you when you need it most?

Join The 5% Club

Well, you now have the chance to be a part of the 5% of those who are successfully pulling money out of the markets each and every week, year after year.

We actually call our little programs Eternal Investment Expert Advisers, because they take an expert look at the markets on a daily basis, and advise us of the trades to take (they actually place the trades for us). We call them “Eternal” because you will want to have these robots trading for you indefinitely. A lot of care and ingenuity has gone into the creation of these Expert Advisers, with a top priority being RISK management.

By licensing our software you have a unique opportunity to let your money work harder for you than it ever has in your life. This happens in your own account, with absolutely zero human intervention (other than, of course, your global management of your own account). Thanks to our advanced money management you now have a one-stop investment vehicle capable of replacing all your other investment vehicles. So don't be afraid to allow yourself true financial freedom. Purchase your very own software license and experience for yourself the uniqueness of Modern Day Alchemy!