FX TIMER
An intraday program for major currencies
CFTC REQUIRED RISK WARNING
FUTURES AND CURRENCIES TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE
ARE UNIQUE RISKS ASSOCIATED WITH UTILISING INTERNET-BASED ORDER EXECUTION TRADING SYSTEMS INCLUDING, BUT
NOT LIMITED TO, THE FAILURE OF HARDWARE, SOFTWARE AND INTERNET CONNECTION. EDGINESS SOLUTIONS DOES NOT
CONTROL SIGNAL POWER, ITS RECEPTION OR ROUTING VIA INTERNET, CONFIGURATION OF YOUR EQUIPMENT OR
RELIABILITY OF ITS CONNECTION. EDGINESS SOLUTIONS IS NOT RESPONSIBLE FOR COMMUNICATION FAILURES,
DISTORTIONS OR DELAYS WHEN TRADING VIA THE INTERNET.
THE RETURNS SHOWN IN THIS REPORT ARE HYPOTHETICAL IN THAT THEY REPRESENT RETURNS IN A MODEL ACCOUNT. THE
MODEL ACCOUNT RISES OR FALLS BY THE EXACT SINGLE CONTRACT PROFIT AND LOSS. THE HYPOTHETICAL MODEL
ACCOUNT BEGINS WITH THE INTIAL CAPITAL LEVEL LISTED, AND IS RESET TO THAT AMOUNT EACH MONTH. THE RETURNS
REFLECT INCLUSION OF COMMISSIONS.
HYPOTHETICAL PERFORMANCE RESULTS HAVE INHERENT LIMITATIONS SOME OF WHICH ARE DESCRIBED BELOW. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE
SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE
ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF
HYPOTHETICAL PERFORMANCE IS THAT THEY ARE PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL
TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT
FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE
TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ADVERSELY AFFECT
ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE
IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM THAT CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF
HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
WHAT IS FX TIMER?
FX Timer is a fully automated trading program for
major fx pairs and their crosses.
Trades are taken in an attempt to time the money
flow in the interbank market and therefore to follow
the main intraday price movements.
WHY FX TIMER?
The program follows the intraday activity that has proven its
persistency through years, and thus delivers consistent returns.
KEY ADVANTAGES
•
Less exposure: no positions held over weekend
and only few are held overnight.
•
Less risk: all positions protected with tight stops.
•
Better consistency: very small drawdowns.
DIVERSIFICATION
•
FX Timer is designed to work with all major
currencies.
•
Since some of them are less correlated than
others, better risk diversification is achieved.
BETTER FITS THE MARKET
•
Since FX Timer follows the activity of major
market players, it is unlikely for it to take actions
during periods of low liquidity such as economical
reports, central banks decisions, and so on, thus
reducing the risk.
SCALABILITY
With the increase of trading
size trading costs also increase, 1000
but the average trade value is
750
high enough to withstand
excessive trading costs
including commissions and
500
higher slippage. Low trading
frequency also allows partial
250
fills and use of algos to fill
very large orders.
0
Hypothetical trading costs vs
average trade value
Trading costs
Average trade
PERFORMANCE BY
INSTRUMENT
Market
Avg. Win /
Avg. Loss
Profit Factor
Percent
Profitable
EUR
1.84
1.92
50.74
CHF
1.55
2.25
58.57
GBP
1.51
2.38
60.74
AUD
1.60
2.21
57.08
CAD
1.54
2.48
60.35
JPY
1.64
1.95
53.75
AVG. WIN / AVG. LOSS
•
This metric says how much an average winning
trade is greater than an average losing trade.
•
For FX Timer average winning trades are at least
1.5 times greater than losing.
PROFIT FACTOR
•
This metric show how much the gross profit is
greater than the gross loss for all trades total.
•
FX Timer features a profit factor of 2 and even
greater that means that the gross profit is at least
2 times greater than the gross loss.
PERCENT PROFITABLE
•
This metric shows the chances for the next trade
to be winning.
•
With FX Timer chances of a winning trade are up
to 60%.
160000
120000
80000
40000
0
Mar 2007 Apr 2008 May 2009 Jun 2010 Jul 2011 Aug 2012 Sep 2013 Oct 2014
PERFORMANCE
Performance chart based on 15 years of data, P/L in pips
KEY METRICS
General performance metrics for the portfolio
Holding period
Trade frequency
Average trade
value
Percent winners
Ratio avg.win/avg.
loss
Profit factor
Up to 22 hours
Max. 4 trades a
day per
instrument
14.5 pips
55%
1.59
2.10
Return on drawdown metrics
Max. historical
drawdown
Avg. monthly return
Avg. annual return
Avg. return on
drawdown, monthly
Avg. return on
drawdown, annual
1050 pips
1510 pips
17800 pips
1.43
16.95
RISKS
•
The key risks for FX Timer are associated with
changes in the market regulations that may affect
operating of major trading desks.
•
Given the very small drawdown, there is a risk of
not performing rather than losing.
HOW ARE RISKS MANAGED?
•
We are constantly monitoring the fx market and
track all changes to its structure.
•
We supervise the portfolio performance to make
sure trades are made in full accordance to the
best of our most recent knowledge about
operations in the interbank market.
WHY ALL REPORTING IN PIPS?
•
Spot fx is highly leveraged, and changing leverage could
dramatically change all performance metrics.
•
Therefore it is incorrect to present any P/L figures as
percentage or money.
•
A report in pips gives a clear idea of performance and
can easily be recalculated to money using comfortable
risk profile.
HOW TO USE IT
Here’s how to calculate actual
P/L based on your comfortable risk profile
Max.
drawdown, Leverage
pips
Account
size
Avg. annual Expected avg.
Max.
Min. historical
drawdown, annual return,
historical
annual return
percent
percent
annual return
1050
1:1
100,000
1.05%
17.8%
7.7%
33.2%
1050
1:2
100,000
2.1%
35.6%
14.7%
66.4%
1050
1:5
100,000
5.3%
89%
38.5%
166%
1050
1:10
100,000
10.5%
178%
77%
332%
You can choose whatever leverage that is comfortable
FX Timer was developed using proprietary
Edgesense Research Framework — a unique tool
that allows to generate highly diversified robust
portfolios of strategies for various markets.
Learn more at http://edgesense.net/research
THANK YOU
For further information contact Edgesense Solutions
http://edgesense.net
[email protected]
US and Canada toll free: 888 333 78 58