The OmicronFX algorithmic Forex trading system is
proving its reliability by being consistently profitable throughout 2017. It
was able to ride out a long-term extreme global economic event, and still show
profits.
The US dollar decline
as an extreme economic event
The US dollar has been in a prolonged fall since the start
of the year. On July 23rd last, Morgan
Stanley said that “Our MS positioning indicator shows the most extreme USD
bearishness since its inception in 2009”. According to The Wall Street Journal on Aug 7th, the US dollar has
been “… suffering through one of its worst stretches in years”. The reasons for
this fall have to do with political events in Washington as much as with
economic announcements from the Federal Reserve - specifically, the belief by
the markets that Donald Trump will not now be able to carry out his tax reforms
because of the difficulties he is having with the US Congress, and even the
Republican Party, for which is supposed to hold the presidency. It is now also understood
that the Trump administration has come around to the belief that a weak dollar
is good for the US. However, there are real signs now that the Greenback has
reached a significant low, and is starting to rise again. Fundamentals,
including payrolls, retail sales and even GDP in the US are showing
increasingly valid signs of what could be termed robust good health.
The factors for
success
The success of the OmicrFX system in coming through this event was a combination of (1) the capital retention policies we have always used, (2)
the price action experience gained over the long development period of the
software, (3) as much diversification as was possible (bearing in mind that ALL
currencies ultimately respond to what is happening with the US dollar), (4) the
fundamental principle that the system incorporates of always playing both sides
of a move, so that there will be hedges in place for much of the time, and (5) last,
but not least, patience and perseverance during drawdowns. This last was made
possible by careful monitoring of the key indicators of leverage used and
drawdown size, to ensure that positions were never in danger from elevated
gearing.
The system is now
well developed
It is important to state that this is not a solicitation for
investment. We cannot do that until such time as we are regulated. However, through
our professional advisors, we have engaged with the Central Bank of Ireland
with a view to becoming regulated under MiFID, the Markets in Financial
Instruments Directive of the European Union, to allow for trading on behalf of
clients throughout the countries of the European Economic Area (EEA). This
process is both expensive and time-consuming.
If you would like to receive regular updates on the
performance of the various Forex trading accounts that we operate, as well as
our progress towards regulation, please send an email to the following address:
seamus.mckenna@omicronforex.com,
or sign up to receive occasional emails by clicking here: http://ethicalhft.com/Managed.html