April 27, 2012

Trade Vantage

I am looking at Trade Vantage, a free piece of software (currently) that utilises the power of neural Networks to analyse ForEx markets and generate signals.

I have downloaded, and for me all I had to do was enter my email address; I have heard that there are slightly more hoops to jump through now.

I then ran the software and started to record any trade which were being opened that day, or any previously open trades currently showing a loss on the basis that if these come back in to profit they will trigger the advised price.

I have looked at the trade history contained in the tool, these are, of course, unverified by us. There are currently 23 pairs to trade. Once per day (I have set my software to European times so 8 am for me but you could check at lunchtime each day instead) I need to check the advice. I will be using IG Index as the data feed to check whether trades and stops etc have triggered.

At the time of writing these pairs show the following pip totals:

ForEx Pair Total Date of 1st Trade
EURUSD

7088

15/06/2011

USDCHF

6167

30/06/2011

GBPUSD

6630

31/05/2011

USDJPY

2632

08/07/2011

USDCAD

4376

19/07/2011

NZDUSD

5996

18/05/2011

AUDUSD

7444

12/06/2011

AUDNZD

3791

19/06/2011

AUDCAD

3797

15/06/2011

AUDCHF

7493

19/05/2011

AUDJPY

6593

08/05/2011

CHFJPY

8236

01/05/2011

EURJPY

3096

28/06/2011

CADCHF

6894

10/05/2011

CADJPY

6016

01/04/2011

EURAUD

6732

04/07/2011

EURCHF

5178

10/07/2011

EURJPY

8294

24/05/2011

EURNZD

9205

03/07/2011

EURCAD

7224

10/05/2011

GBPCHF

8260

23/05/2011

GBPJPY

7628

01/05/2011

NZDJPY

5062

10/05/2011

 

A total of 143,832 pips. The first trade is shown as 1 April 2011, so this is total is in 13 months. Very impressive indeed!

However, we are trading daily, and I feel that you have to at least cover the “max intraday drawdown” for each pair, and then I have added roughly 100 pips to give a little headroom, and consequently my stops are between 200 and 350 pips.

The reason this is important is that it will affect the margin required to trade. A 200 pip stop at £1 per pip, and using good money management of risking no more than 3% on any one trade will require a bank of around £7,000, but 350 pip stops requires closer to £12k. GKFX and Alpari do allow 10p trades though, so this makes the initial bank requirements more manageable. Remember to use their SpreadBetting platforms though!

23 pairs is a lot to trade, so please use the pip totals above to focus on the more profitable pairs, EURNZD for example whilst building your banks.

I will be using the Cash Master standard £10 per pip.

Filed under Forex,Spread Betting by Arthur

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