The OmiCronFX Mandelbrot Forex algorithmic
trading routines have been over five years in the making, but bring together
various strands from a lifetime of experience which itself goes back over 40
years. They involve three core elements. These are:
·
Ethical high frequency trading
·
Math, trading expertise and
instinctive computer programming skill
·
Detailed research into historical
exchange rate patterns and their underlying causes
Ethical
high frequency trading
Computers are here to stay for all
activities, and FX trading is no exception. The Mandelbrot routines are powered
by the careful discovery and application of the factors that place probability
squarely on the side of their creator, combined with the implementation of the
most comprehensive and effective risk management and profit retention
techniques in existence. The routines provide trading discipline, split-second
decision making and infinite patience. They are not robots – OmiCronFX trading
is done in a manner that is systematic rather than automatic. Forex trading is
too complex for anything else.
Math,
trading expertise and instinctive computer programming skill
Your commentator has always had an
affinity for mathematics. He has qualifications in Civil Engineering and Computer
Science, and an MBA from Trinity College, Dublin. He is a former joint owner of
a company that developed mathematical software for engineering applications and
for the resolution of transcendental equations.
He has been trading since the 1990s,
initially in equities, then in options, equity indexes and Forex.
Deep,
detailed research into historical exchange rate patterns and their underlying
causes
After gaining his MBA, the founder of
OmiCronFX was a business analyst with Colgate Palmolive Company and Shell Oil.
This work was centred on data mining and analysis so that meaningful outputs
could be presented to senior management to drive tactical and strategic
business decisions. The same skills and attention to detail have also gone into
the development of the Mandelbrot Forex trading routines. Here, using
Mandelbrot, historical exchange rate movements are examined in the context of the
fundamental and technical analysis of conditions that pertained at the relevant
times. This has been coded into the software logic. There is continuous
monitoring of outcomes to ensure that the assumptions made remain valid.
Beware
the month-end fix
We sat on the sidelines yesterday, as
we normally tend do on the last day of the month. This is because a choppy,
non-directional market can be expected, due to what is known as the month-end
fix.
Around the end of the month, traders
in all kinds of trading instruments (equities, bonds and even currencies other
than the one they have as their home currency) like to hedge their open
positions in order to limit the effects of exchange rate risks, and so report a
good outcome for the month. This activity has the effect, very often, of
creating a market where making profits can be difficult. This effect is even
more pronounced when the end of month also coincides with the end of the
quarter, or of the year. So we keep our powder dry. The process is known as the
month-end fix. Here the word “fix” is used in its technical sense, which means
to make something unmovable (in this case the monthly profits) rather than in
any way that might give the impression that something untoward was going on.
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