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:

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