Having worked for many years in the financial industry and having experience in managing large amounts of capital, we have formed our own stable vision regarding the methods used, the necessary trading conditions and profit and risk benchmarks, which have remained unchanged for many years.
Our trading strategies are based exclusively on the use of mechanical trading systems (MTS).
The main advantage of using MTS for us is not so much the possibility of full automation and the exclusion of the human factor from making trading decisions, but the possibility of conducting statistical research, tests and optimizations on extensive historical data.
Any idea written in the form of algorithms can be tested on history. Every trading decision made by MTS is statistically justified. What can not be said about manual trading.
At the same time, we treat each MTS used not as a “holy Grail”, but as a complex equipment that requires timely maintenance, including configuration, repair and diagnostics of operability.
The use of MTS makes it possible to accurately calculate potential profits and risks and evaluate the performance of the algorithms used due to constant monitoring of key characteristics.
In the course of our work, we use only the most liquid financial instruments with a long history of their existence, including major currency pairs, precious metals, commodity futures, major stock indices, etc.
The presence of a long history of quotations allows us to conduct a comprehensive statistical analysis covering all possible time periods, including periods of growth, decline, including periods of global crises.
High liquidity is a prerequisite for ensuring the accuracy of strategy development, which allows you to ensure maximum compliance of real trading results with theoretical ones and predict potential profitability with a minimum error.
Therefore, despite the ambiguous attitude to the FOREX market in the exchange community, in our practice we constantly use currency pairs as trading instruments, taking advantage of their advantages in liquidity and the presence of a high-quality long history of their quotes.
All mechanical trading systems included in our portfolios are designed to meet a number of requirements for the possibility of long-term management of large amounts of capital.
In particular, each trading system should be resistant to poor-quality execution of transactions with a drop in market liquidity, use leverage to a minimum and successfully pass tests on a sufficiently long history covering various market phases.
Accordingly, in our systems, we avoid using algorithms that are sensitive to unfavorable market conditions, such as scalping or high-frequency trading, and we also try to avoid trading during periods of low liquidity, for example, at night.
At the same time, we categorically reject any pseudo-methods based on sitting out losses or on any variations of the martingale.
Despite the fact that our developments can periodically demonstrate extremely high results, we understand that it is impossible to provide super-profitability indefinitely due to market volatility and limited market liquidity.
Since we are focused on long-term management, for us, reliability and stability come out in the first place, rather than superprofit.
Therefore, our long-term strategic goal is to ensure that our investors receive returns higher than the returns of the main market markers in the form of stock market indices, in particular the S&P500 index, with a lower level of risk.
Nevertheless, in some cases, we admit the possibility of obtaining extreme returns, but we must keep in mind that this is possible in the order of implementing short-term ideas and only with limited investment volumes.
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