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

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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