AUTOMATED CURRENCY TRADING

Transcription

1 AUTOMATED CURRENCY TRADING The objective, automated and time efficient way how to diversify your investment activity fully under own control. 1 AlgoFxSolution.com

2 INTRODUCTION We are a technology company providing solution for automated trading in the currency markets. With our products we enable our clients fully automatically capitalize the funds independently of the global financial markets. Our goal is to offer solution for trading and investing in the 21st century, which is characterized by the dynamic behavior, low yields and high correlations between markets. PROBLEM Search for good return in today s environment is problematic. A lot of money in economy decreases return on investment, increases correlations between markets and you have to search for alternatives. One of your found alternative can be currency trading, also called Forex the biggest financial market in the world. By trading on the currency markets can be achieved significant diversification to your current activities, such as investing in stocks, commodities or real estate. On the other hand, it requires the activity, plan and the right tools. SOLUTION We offer solution of your problems by linking technology with financial markets. So called portfolio of automated trading systems is a suite of programs with built-in mechanism (algorithm) for evaluating market data, based on which decides when to buy or sell. At the same time manages trade after its opening until its closing without interaction with the user. Automated Trading Systems are based on described behavior, tests and data with no place for speculation, so your trading is objective, automated and time-efficient. You don't have to devising strategies and approaches - you will focus only on the evaluation of results. WHY TO BE INTERESTED IN OUR PRODUCT Investments are always to probabilities. Whether it's stocks, where do you handle the probability of future growth, property or a firm and its product. Our product is built on objective approaches with quantifiable affection of probability. We do it using two parameters. The first is the post-production efficiency performance of products obtained from our research and current trading, which is around 70-80%. The second is holding a ratio between objective risk and effectiveness-adjusted performance higher than 1. 2 AlgoFxSolution.com

3 OUR SOLUTION PRODUCT The product is the Portfolio ATS, portfolio of trading systems (specific algorithms) with objectivelydefined risk and historical performance. The product is designed as a solution - product will be set together with determination of the risk and can be started. Simultaneously, the client exactly knows when to stop operation of the portfolio due to limited usability. Trading systems use low-frequency trading approach. This means that they do low number of trades and hold them for hours or days. Every trading system trades only one trading instrument (for example EURUSD). For the construction of trading systems we use procedures for seeking patterns that tend to repeat and it is possible to profit from it. During development of programs and entire portfolios is applied a series of tests and specific procedures for the selection of appropriate algorithms. Example of trading system in action Trading systems enter into trade through pending orders. Once the market price reach the entry price of the order, the position will be opened and the system will manage trade by the rules. Trade is always equipped with a preset command to end the trade in case of loss (ie. Stop-Loss), red line in the picture. If the system does not have any position in the market, he usually placed buy and sell pending orders as shown in the picture. Then what is one of the orders executed, the second pending order is terminated and the system focuses only on activated trade. TIME LIMITED USABILITY Limitation of usability is part of a long-term concept, reflecting changes in the markets. It derives from our research when we reached the optimum range to ensure the probability of profitable results. Currently applied process involves limiting the usability of the portfolio for one year. For this period is also licensed the product. THE OBJECTIVE RISK AND PROFIT POTENTIAL RISK Each portfolio has its own objective risk, defined as the biggest drop in performance in history. This value is reached or slightly exceeded in future performance, but it serves as a very objective risk factor. 3 AlgoFxSolution.com

4 OUR SOLUTION Model example calculates the need of initial capital as a 2 * objective risk. If there is an objective risk of a portfolio $1000, then the optimal initial capital is $2000. On the picture above is a graph of historical portfolio performance (only an example). Marked area is the largest drop in performance. PROFIT ROI is dependent on the application of an objective risk. Higher risk aversion, higher multiple of objective risk, lower ratio of profit or loss. Each portfolio has an attached report with historical performance, from which can be determined the relationship between objective risk and average annual profit. The expected return should be reasonably undervalued (bad conditions, errors). Practical summary: If the objective risk is $1000, the recommended capital is $2000, and reasonably expectable profit $1500. Settings can be edited on the basis of initial capital. If the client wants to trade with $3000 or $4000 capital (or more) and have the same proportions as in the above example, by adjusting a value in setting is achieved consensus. The largest drop in history (drawdown) and annual portfolio performance. The blue line shows reasonable underestimation of annual performance. 4 AlgoFxSolution.com

5 OUR SOLUTION BENEFITS To prove the benefits, we regularly choose portfolios for trading and monitoring results through a third party (an analytical server MyFxBook.com) for independent verification of trading performance. Because every customer can choose his own risk setting, we decided to not use adaptation to trading account balance. So important is primarily relative measuring (like ratios between risk and profit), not absolute values. The purpose of the presented results is to show long-term benefits. algofxsolution.com/verified-results FREE VERSION We offer for free to try one trading system for better understanding of the product. You can look at settings and watch how the trading system places and manages orders. It is limited solely to the demo account. The intent is to show part of the product in practice. PRODUCT VERSIONS LIGHT - Purpose of the Light version is to build confidence in a product with low risk and capital. - The objective risk around $200 with need of capital about $ Price: $99/Year license (+VAT) CLASSIC - Standard version for normal use. - The objective risk around $1000 with need of capital about $ AlgoFxSolution.com

6 OUR SOLUTION - Price: $369/Year license (+VAT) PREMIUM - Fully automated solution covering portfolio of automated trading systems, remote server and technical monitoring solution together with initial setup. - Basically, we take care of all the technical aspects and the client retains control and direct oversight of their capital in their hands. - The final price with tax is derived from the client's capital. o o o o Range of client capital: Price of license / $500 of capital $ $7500: $125/$500 of capital $ $20000: $100/$500 of capital $20000+: $75/$500 of capital - There is an option to choose the payments layout on a quarterly basis. More on request. 6 AlgoFxSolution.com

7 TECHNICAL REQUIREMENTS Automated trading system is specifically sub-program with built-in algorithm. This sub-program runs on a trading platform from your broker, which provides you access to the currency market and where you have a trading account. The condition is to own a trading account with one of the brokers and the minimum capital related to portfolio and product version. On the picture above is a demonstration of the trading platform with six trading systems (subprograms with algorithms). Three trading systems for the currency pair euro against the dollar and three for gold against the dollar. As a whole form a portfolio. REQUIREMENTS FOR TRADING ACCOUNT: - Do not apply FIFO (First In First Out rule) - Allowed Hedging - Instrument XAUUSD (Gold) - Optimal leverage 1:100 TECHNICAL FACILITIES AND OPERATION: - MetaTrader trading platform of your broker - VPS (Remote server) o It can be solved by running on a personal device, but given the need to run 24 hours, the stability of the connection and technical reliability, it is inappropriate. 7 AlgoFxSolution.com

8 GET IN TOUCH WITH US Customer Support: Business / General: info@algofxsolution.com UK: +44 (0) CZ: Skype: algofxsolution.com LinkedIn: More On: algofxsolution.com/contact 8 AlgoFxSolution.com

9 RISK DISCLOSURE Algofxsolution.com is owned by Acquire Technology Ltd. The Company is not a registered broker or investment adviser, but a software (IT) company, and although the company may provide set files and suggestions to end user clients, provided information does not represent any kind of investment advice or trading recommendation. The Company presents information about automated trading systems (ATS). ATS is a software computer program, not a financial or investment product. Buying itself the right to use this software does not allow access to any financial market, and thus on FOREX and therefore for the user does not mediate nor offer any investment or other service in the financial market. The author does not give any expressed or implied warranty as to its accuracy. The author does not accept any liability for error or omission. All examples are provided for illustrative purposes only and should not be construed as investment advice. The information provided in this information material is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject the author to any registration requirement within such jurisdiction or country. Trading any financial market involves risk. This information material is neither a solicitation nor an offer to Buy/Sell any financial product. The contents of this information material are for general informational purposes only. U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures, Currency and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this information material. The past performance of any trading system or methodology is not necessarily indicative of future results. For example the ability to withstand losses or to adhere to a particular trading program in spite of the trading losses is material points, which can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. CFTC RULE HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. 9 AlgoFxSolution.com

10 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - including electronic, mechanical, photocopy, recording, scanning or otherwise - without the prior written permission of the author Acquire Technology Ltd. 10 AlgoFxSolution.com