Trading Lab – Customization & Bespoke Solution

Manual Trading or Algorithmic Trading

Manual trading can be lucrative and profitable but the scalability is always questionable. No matter how good the past performance was, traders can become rogue and inconsistent after handling bigger AUMs. Stress, anxiety & emotions often led to deviation in trading performance which can be detrimental to active trading and often under-performed against passive investing such as buying the S&P 500 index through dollar averaging.

No matter how skillful, talented and professional a trader is. He/she will eventually have losing streaks, poor trading months, trough & valley and even will have several months of downtime. It is also not surprising when the market goes into an extended period of a strong trend often going against the trader’s positions. No matter how many grids, averaging and martingale used will only lead to further exposure and extreme risks leading to margin calls of trading accounts.

Like most things in life now are automated to a large degree. Traders, Investors, Brokers & Funds look for alternative trading solutions to automate their trading accounts to overcome emotions & discipline issues. Other than that, it’s about the consistency and systematic way of achieving long term success and profits that are sustainable, progressive and grow passively keeping profits rather than losing the profits and thus harming the trading capital.

Xeconds Strategy Ltd employs a research-based “systematic and consistent approach” to financial software development and construction. This disciplined approach of identifying long-term, repeatable sources of return means having a high conviction in the process, but not a high conviction in any particular trade. We produce automated trading systems/indicators/dashboards that can be connected to any MT4 trading accounts Brokers and globally. Our secret lies in the Laboratory. We collaborate with quants, programmers and experienced traders from all over the world to develop automated trading systems that generate Alpha consistently and sustainably over the long-term.

There are 3 categories of trading systems that can be deployed.

  1. Plain vanilla trading strategy (Intra-day) with a hard stop loss, dynamic take-profits, and AI trading manager that decides exit as market progress in live-trading. This type of systems is often employed in tier 1 fund management which is more protective of the downside versus returns. The pursue of Alpha through defensive trading protecting the trading capital whilst patiently deploying all trades accordingly to mandated trading plan through a pip expectancy approach. This means that as long as the system open trades regularly and consistently it will be able to achieve positive pips in the long-term. This is more suitable for fund management companies and HNWI who are looking for capital appreciation and growth in a steady manner.
  2. Grid + Martingale trading system (Day to Swing) is often used by investors who have a slightly aggressive risk appetite and willing to take on a considerable amount of risk for an exponential return that cannot be found in (1). Unlike online gurus and social traders, the system deployed in (2) comes with a hard stop loss of 50% without limiting on the upside. The downside is guarded at 50% taking on sufficient room for buffers allowing the trading system to trade through trough and valley and also during the extended period of trends. Unlike manual trading, each methodology is back-tested and also forward traded in the live market. Asian trading programs often seek (2) type of trading systems due to high-interest rates in their own countries, thus seeking risks is necessary and part of their pursue performances.
  3. Churning (High Frequency) trading system’s objective is to open trades consistently regardless of market conditions to generate active trading activities. Forex brokers often have unused margins and inactive client’s accounts and utilize the inactive capital to generate some forms of returns and trading volume to hit their monthly revenues and targets. The risk is not as extensive as compared to (2) but also able to generate some forms of profits & performance during good-times. In other words, it also helps to levitate a broker’s trading costs and also increase liquidity in its offerings without taking on too many risks. Fx Brokers also offers (3) to IBs who are interested in high volume trading system that can trade 100-200 lots and also up to 1000 lots per 100,000 USD capital a month. Rather than just relying on performance fees often found in (1) or (2), IBs may prefer a stable income through (3) without seeking higher risks than (2).

Contact chap@xeconds.com to find out more on our trading solutions.

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