Market collapse a boon for FX quant systems, and suggests FX is an emerging asset class
Fear and market declines have plagued the headlines, but a different story is emerging from automated black box traders in the FX markets.
"Ever since the collapse of Lehman Brothers, our phone has been ringing off the hook. I don't have enough time in the day to properly follow up all the new leads coming in," says Joe Gelet, President of Elite E Services FX Systems. He continues, "While retirement accounts are being wiped out, our systems are over-performing our expectations. Some client accounts were up over 250% in a single week of trading! (These systems are high-risk systems and should be treated as such) The volatility has been great for our systems, and clients are seeking an alternative to the traditional."
Frank Franze, President of Z Trade FX, says: "We're getting requests that simply didn't exist 3 months ago. Brokers are saying they opened more accounts in the last 6 weeks than they did in 2007. Everything is shifting around – some brokers who are plagued with liquidity issues are seeing clients flee to those who aren't. Z Trade FX is positioning itself to be a world-class Introducing Broker to multiple global firms, so clients are handed a choice."
Elite E Services has completed an Expert Advisor trading system after 8 months of research & development. The system has been named "Golden Grid" because it is a Grid trading system based on Fibonacci, a.k.a. Golden Ratio. The golden ratio appears in nature and in the markets; the Golden Grid system takes a simple approach to trading, and by implementing the Golden Ratio both in the positioning of the grid itself and in the money management, it enables a simple system to work on any market in any condition. Built into the system is an account protection risk module that can be set by the user, normally to 5%. This protects any account from a black swan event causing a large drawdown. Golden Grid is available on the Meta Trader 4 platform.
EES has also developed an entire range of systems for the Tradestation platform six of which are being released this week which can be traded as a multiple currency basket and make up a portfolio designed with a low-risk money management profile. When traded as a portfolio further protection again is offered with a maximum 10% risk. The first six crosses now available are EUR/USD, EUR/AUD, GBP/USD, EUR/CHF, NZD/USD, and AUD/USD. These systems can be traded individually or as a portfolio wherever Tradestation is available.
Z Trade FX is offering clients a $500 instant rebate to any customer who opens an account and deposits at least $50,000 USD by December 31st, 2008. See more detail at www.ztradefx.com
Elite E Services develops quantitative systems for the FX market as well as advising investors about FX at www.startelite.com
