Forex Trading Strategy

The strategy employed in the forex is based on a mathematical model which has the ability to generate entry signals based on a combination of core technical aspects and seeks a double confirmation by analyzing correlating securities.

Signals are aligned to respect major support and resistance levels, which have been identified as critical in real time. Furthermore, the signals are designed around a system which provides for a high probability of success.

In regards to risk management, our signals have a very short stop loss, kept at 15 pips, carrying a risk per signal of 0.10% on a hundred thousand lot.

Historically the max drawdown has equated to three consecutive losses or 0.30% on equity.

Profit targeting varies due to the floating targeting system used which assess the market´s momentum and takes possible hurdles, such as contradicting fundamental aspects into account. The minimum target level is set at 20 pips, producing a favorable risk/reward ratio of at least 0.75 to 1.

A further measure integrated to assure a low risk approach is the core design of the signal, which has been developed to limit the time exposure, claiming an average duration of just 30 minutes. On days with relative low volatility signals might have a duration in excess of 1.5h. However on volatile days, when the bulk of the signals will be sent, duration seldom exceeds 20 minutes and the mean is set around 7 minutes.

 

Signal Products

We currently offer retail signals on a variety of products, including the EURUSD, GBPUSD, EURJPY, USDSEK which are traded on the Forex spotmarket. To provide equity exposure we offer signals on the EUROSTOXX 50 index futures and S&P500 index futures.

All products are designed to target securities which are characterized by large trade volumes and which carry low transaction costs.

We are aware that every investor has different goals and to obtain these goals we provide different products which are differentiated not just by different securities but we have identified different term structures which implies a difference in duration for which these trades will be active.

 

 

Trading Signal Stats »

" Time is your friend; impulse is your enemy "
                                                                                   Jack Bogle