Monday, March 31, 2014

High frequency traders exposed | Yes - OmiCronFX does algorithmic trading






Michael Lewis, who became famous with his earlier work, “Liar’s Poker”, has written a new book, this time on High Frequency Trading (HFT), and the experiences of a group that first of all figured out what was going on, and then developed a way of combating it.

Their story is told in a video from the US TV channel CBS’s 60 Minutes program.


OmiCronFX does algorithmic trading

Yes, OmiCronFX uses computer algorithms to give it a trading edge, but not in the manner described in this film.

Apart from the benefit of using the software, we also carry out a very significant amount of fundamental and technical research. Once that has identified suitable trading pairs and the direction in which they are most likely to trend, the software takes over the functions of:
·                    Confirming, by use of the core algorithm, that the trend exists and is building
·                    Deciding the entry point for a position that will create the best balance between ensuring it is in a trend, on the one hand, and getting maximum benefit from that trend on the other.
·                    Calculating the optimum position size
·                    Ensuring profit retention measures are carried out efficiently
·                    Closing the trade when this is appropriate
In this way we ensure that the rules of the strategy that we have developed over time are implemented with maximum discipline. The results can be seen for themselves in our trading.


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