Saturday, July 24, 2010

Forex Automated Trading System Review

Financial paradigm shift

Many theories describe abstract concepts of economics but none provide a vehicle for profit. Investing has become more of a casino than a calculated science, and that trend will continue as we shift from an industrial to post-industrial society. Events like Hurricane Katrina, Enron, and 9/11 make financial markets unpredictable, but not unstable. Thus, traders will adapt to new investment styles as markets behave more erratically and new markets develop.

Strategy Mantra

The market is random. You always have a 50% chance of winning. Traders attempt to increase this above 50%. Even 60% wins, can result in a very good return. Our strategies are based on statistical models. Time does not exist in Forex, only ticks exist. That means, time should be defined in ticks, not in hours or minutes. In 1 minute, for example, it is possible there is no tick! Our goal will be to develop strategies that will maximize the statistical probability of profit to extremes.

Ever consider what would happen if the Chinese Yuan is floated? The reason Chinese products are so cheap, is because their currency is pegged to the US Dollar. The Chinese government has begun the process of trading the Yuan – and when it is freely traded, there will be an explosion in the foreign exchange market, greater than any financial event in this century.

We propose to build the ultimate app for this hot new market: A software that creates strategies.

This software is something you’ve never seen before. Automatic trading software that self-adjusts in real-time. We will create a post-industrial financial operation.

Currently, there are currency trading strategies, but none of them can adjust themselves, they require human intervention that takes time and is subject to error. According to our market research, there is no strategy in the world that can do this, and no attempt to make one.

What does this all mean?

The software will take advantage of trading opportunities not possible by conventional human traders.

  • Evolver Module 'Evolver' - Will create self-adaptive trading strategies and execute them in real time. Evolver will evolve as the market changes according to profit.
  • Pattern Module - Will create custom indicators which can be traded or packaged and sold to hedge funds.
  • Arbitrage Module 'Predator' - Predator will seek and capture arbitrage opportunities

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