Monday, March 6, 2017
Most retail Forex traders lose money, so you need a managed account
Ethical HFT is the managed trading account arm of OmicronFX Limited, whose principals are Ronan Harbison and Seamus McKenna. Between them they have a lifetime of investment and trading experience, in all asset classes, as well as many years of total immersion in the use of computers and algorithms for generating profit and mitigating risk. Seamus McKenna is the author of "The Omicron Forex Trading Manual".
We use algorithmic trading software to trade in Forex markets. The software routines decide when to put on positions, how to manage them, and closes them out when it is time to take profits. The system makes use of extensive risk mitigation methods, which include diversification and hedging. While the software takes care of the minute-to-minute trading functions, there is constant human oversight, with the ability to intervene should this be required.
Software development is a continuous effort, and is carried out by OmicronFX Limited. It is only when algorithmic routines have been tested to the limit that they are allowed to participate in live trading.
Because it can place and close trades very quickly, as everything is controlled by our computers, EthicalHFT's operation can be classified as High Frequency Trading (HFT). However, unlike some HFT traders, EthicalHFT does not engage in front-running, spoofing, or any other illicit practices such as those, for example, that are described in Michael Lewis's famous book, Flash Boys.
EthicalHFT does have a trading edge, however. The edge gives it an above-average chance of making profits. It is derived (1) from the fact that computer trading software never gets tired or bored, and can indulge in repetitive actions that are profitable for weeks, months and even years on end; (2) from the vast amount of research that we carry out into historical price action and the trading characteristics of the Forex pairs we work with; and (3) from the continuous effort we put into the design and testing of our trading software.
We have been guided and inspired by the work that has been done in Chaos Theory by such as Edward N. Lorenz (2017 - 2008), and in Fractal Studies by Benoit Mandelbrot (1924 - 2010), as well as all the other great practitioners of mathematics, physics and engineering that have paved the way in the use of logic and systems. It is accepted now that those subjects, and all matters that have to do with attempting to benefit from what might or might not happen in the future are, at bottom, concerned with probability. Our work in profiting from Foreign Exchange trading is devoted to getting probability on our side, and of making use of computer power as an enabler in this endeavour.