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All Trading Systems Are Not Created Equal

Today’s Forex market is the largest financial market in the world at an astounding $5.2 trillion per day in trading volume.

A recent survey conducted by the Bank of International Settlement (BIS) reports that today’s Forex market is the largest financial market in the world at an astounding $5.2 trillion per day in trading volume.

In simple terms, Forex trading is a method of determining whether to buy or sell a currency pair at a given time and the market by which to do so. To make buy/sell determinations, Forex system traders typically use a set of signals based on technical analysis or rely on news events that may trigger currency pair trading patterns. Historically, Forex trading systems were manual methods that involved a trader watching the news for patterns and signals. Today, however, many Forex trading systems are automated and utilize sophisticated software to make decisions, thus reducing or eliminating the potential for emotional decisions and/or poorly timed decisions.

Those seeking to invest in today’s Forex market are advised to conduct in-depth due diligence. There is no shortage of trading systems in the world and they are definitely NOT created equally. By doing the right homework you’ll be able to identify Forex managers that out-perform others, and in this market, longevity is a critical component of success.

Be sure you thoroughly understand the trading systems if there are any employed as well as who the managers are. Mediatrix Capital’s founders, for example, have 40+ years’ experience in the Forex markets and/or commodity trading and began developing algorithms in 2007 specifically to participate in the $5.2 trillion daily activity. The original trading system relied on trading a single currency pair — the British Pound: Swiss Franc. From the beginning, a hedging or “Zone Recovery” function (now functions), was in place to protect investors’ capital if the probability calculations of a market directional move resulted in the system taking a position, but the market realized an actual opposite change in direction. Should this occur, the system can analyze the market move in extreme short timing, and provide for multiple “Zone Recovery” strategies to essentially neutralize drawdown and diminish the possibility of loss.

When evaluating a manager also ask about system upgrades. Mediatrix Capital is in a continual development cycle of its systems over time which allowed for the first major upgrade to trade four concurrent currency pairs, thus taking the highest probability signal of four choices vs. a single choice. More importantly, a second layer of “hedge” functionality was born. The currency pairs traded were correlated to one another, and if zone recovery was required, beside the counter trade methodology to neutralize drawdown, the system was instantly able to analyze if a correlated pair was available to trade the now understood appropriate direction based on high coefficiencies of correlation. The result in many instances yielded gains on occasions when other traders would normally realize losses from the market conditions.

Additional significant upgrades followed and enhanced the trading system by operating two functional stand-alone trading systems — one with a 30 concurrent currency pair functionality and a second that added four precious metal pairs, including gold, silver, platinum and palladium to the currency suite, for a 34 pair system. With both systems constantly working and sending signals, and with 30-34 choices from which to choose, the probability of successful trades is now even more common, as the system is able to discriminate to the highest of probability signals. All of the pairs in each of the systems are also programmed to understand the co-efficiencies of correlation — one to the other — and the artificial intelligence capability selects the highest probability pair for zone recovery correlation trading amongst other functions.

A third release improved upon the stop loss and break-even aspect. Now, the system employs auto stop losses that trail at specific calculated price levels based on each currency pair ranges. As soon as a position achieves a positive gain, the stop loss automatically moves to an an above break-even point. Essentially, if a trade doesn’t quite arrive at the specified target price to auto-exit, and turns around where it might arrive at a loss, the system automatically exits the trade at a small gain. This means that the trading system is able to increase its true win loss ratio and achieve higher profitability in the short term.

In summary, there are a number of interesting and time-tested Forex trading systems available to investors. Fortunately, today’s technological advances continue to improve upon system functionality and the future is bright indeed for Forex investors seeking to give their portfolio a boost. Relevance means keeping up with technology and the changing market-scapes. Relevance also means staying one step ahead and building technology that is designed to evolve as the market does. Know your options.

For further information, visit or call 1-800-905-1006.

In no event should the content of this material be construed as an advertisement, express or an implied promise, guarantee or implication by or from Mediatrix Capital Inc. (MC) or any of its partner or subsidiary companies. This is not an attempt to sell or solicit any security and should not be taken as such. The content of this document is for informational purposes only. Potential Accredited Investors are advised to carefully read the Disclosure Documents to determine whether a managed investment in MC is consistent with their financial situations and investment objectives. Past results are no guarantee of future performance. Mediatrix Capital is a foreign corporation based in Nassau Bahamas, and does not operate within the United States.

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