Algo presentation
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Transcript of Algo presentation
RockSolidFx EA Wizard Algorithmic Trading
Disclaimer
Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on RockSoildfx or on other sites that have received permission to republish the content originating on RockSoildfx reflect the opinions of the individual authors and do not necessarily represent the opinions of any of RockSoildfx authorized authors. RockSoildfx has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on RockSoildfx and permitted
re-published content should be taken as general market commentary. This is by no means investment advice. RockSoildfx will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.Copyright © 2015 — RockSoildfx ltd. All Rights Reserved
Algorithmic Trading
What is Algorithmic Trading Algorithmic trading, also referred to as Algo trading and black box/Expert advisor.
automated trading by computers which are programmed to take certain actions in response to varying market data:
“Algorithmic trading relies on computer systems to buy Currency or shares automatically when predefined market conditions are met“
Who Use it
Who use it ?investment banks, pension funds, mutual funds, institutional traders, Small Speculators Retails Traders ( You and Me) Now have access
Why do they Use AlgorithmsAdvantages
UnemotionalFaster Reaction ConsistenceRepetitive action (looking for repeatable patternsBetter risk Management
Disadvantage Human Touch(gut Feeling)News events Selecting which algorithm to useMarket Moves against your Position
What makes a Good Algo/Black box
Clear understanding strategy objectives Robust pre-trade models Built in money Management Faster Reaction Thorough post-trade analysis AdaptableHuman Monitoring Many Programmers are not Traders
Semi Automatic
Trader has Clear understanding strategy objectives Close out or reduces trade size Adds to Winning PositionsTurns off during News Events Selection of the best Algo to usesReduce any draw downs that may occur
Bar Chart Example
USD Based
Yen Based
Cross Based
GBP Based
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Profit FactorMonthy returnYearly retun
GBP/USD Results over 3years
GBP/USD Equity Results over 3years
GBP/USD Results over 3years
USD/JPY Results Over 3 Years
USD/JPY Equity Curve Over 3years
GBP/USD Results over 3years
Next Stage : Moving Forward
Demo Testing Live Testing Development of Improved Techniques (Fine Tuning) Quantitative High Frequency Trading
GBP/USD Black Box Video
In Conclusion
One Size Does not fit allStrategies & Techniques does not work all the time.Picking the best environment for the Algo in my opinion is the Most sensible approach.Consistent Monitoring for Optimal efficiencyPast History does not Guarantee Future results